Additional £43m announced for Charitable Bonds housing programme

The Charitable Bonds scheme provides loans to Registered Social Landlords, with the interest on repayments being re-invested in affordable housing.

Since 2014, the programme has supported the delivery of around 4,500 properties and generated a further £175.6m toward the completion of more affordable homes.

The additional funding takes the total investment for 2025-26 to £78m. Bonds have been issued to Kingdom, Eildon, Cairn, Govanhill, Lochalsh & Skye, Lochaber and Wheatley housing associations.

Housing secretary Màiri McAllan said: “The Charitable Bonds programme shows our determination to make best use of different streams of finance to deliver more warm, safe and affordable homes for hundreds of families.

“This sits alongside our commitment to deliver up to £4.9 billion of investment over the coming four years, with homes delivered through a mixture of public and private investment. This will support the delivery of 36,000 affordable homes and is estimated to provide a place to live for up to 24,000 children.

“As we develop plans for our new housing agency, More Homes Scotland, it is my intention that it will deliver innovative finance models like this one to deliver more housing across the country.”

Kingdom Group finance director Lesley Janes said: “The Charitable Bonds programme is a proven model that works, delivering thousands of affordable homes across Scotland, and this additional investment keeps that momentum going.

“For Kingdom, access to this kind of funding is central to our ambitious development programme and our commitment to help tackle the housing emergency. We’re proud to be part of a partnership that puts more warm, safe, affordable homes within reach of the people and communities that need them most.”

Allia C&C director and head of Scottish office Peter Freer said: “Allia C&C has been delivering the Bond programme for over 10 years and is enormously proud of what it has achieved in that time. The programme provides a unique and straightforward funding solution that has helped channel a further £78m of Scottish Government investment into much-needed new affordable homes across Scotland.

“This brings total investment in the programme to £585m - delivered to 39 RSLs ranging from the largest associations to the smallest, spanning rural and urban areas and, crucially, reaching every corner of the country. As the need for good-quality affordable housing remains as pressing as ever, we very much hope the programme continues to go from strength to strength.”

In an effort to maximise opportunities for affordable housing delivery, the Scottish Government said it intends to make the scheme more open in the future to enable a wider range of affordable housing providers to access this funding. The procurement process for administering the scheme will start later this year.

The loan element of the bonds will support affordable housing developments across a range of rural and urban locations in Scotland including: 30 homes in Skye and Raasay; 35 homes in Galashiels; 40 homes in Fort William and Mallaig; 28 homes in Irvine and East Whitburn; and other ongoing development programmes across Fife, Edinburgh, Lothians, Glasgow and Dumfries & Galloway.