Scotland is witnessing a steady rise in the demand for supported housing. In 2023-24, 40,685 people applied for homelessness assistance, marking a 4% increase from the previous year. Many of these individuals are facing significant challenges such as homelessness, domestic abuse, addiction, and involvement in the justice system.

Each year, between 2-5% of those seeking help require supported housing. This continued increase demonstrates the need for stable, long-term housing options that not only provide shelter but also offer the security and support necessary for vulnerable individuals to rebuild their lives.

For charities working to support these individuals, this rising demand presents both a challenge and an opportunity. While these organisations are ideally positioned to offer long-term housing solutions, they often encounter significant barriers. Rising housing costs, limited access to funding, and a lack of suitable properties to meet the growing need complicate their efforts. This is where social investment can make a real difference.

The opportunity for charities

Social and Sustainable Capital’s Social and Sustainable Housing Fund II (SASH II) offers Scottish charities an opportunity to secure flexible, long-term capital to purchase and manage their own properties. This funding provides a sustainable solution to housing provision, reducing dependence on an unpredictable rental market and offering stable, long-term homes for those in need.

The fund offers loans ranging from £1 million to £5 million, giving charities the financial flexibility to purchase properties and manage them effectively. This level of control over housing allows charities to better cater to the specific needs of their client groups—whether they are supporting people affected by homelessness, domestic abuse, substance misuse, or other vulnerabilities.

The SASH II model removes the financial uncertainties often associated with renting. Charities are no longer at the mercy of fluctuating rental prices or availability; SASC takes on any risk of voids or negative equity. This stability allows charities to focus on their core mission—delivering services that truly help people.

Why ownership matters

Owning properties offers charities financial resilience by placing assets on their balance sheets, which can help secure their long-term financial sustainability. This is especially important given the increasing housing costs and evolving government policies that could limit access to rental properties.

Ownership also enables charities to offer more personalised care to the individuals they support. For example, charities can create tailored living spaces for survivors of domestic abuse or young people transitioning from care—solutions that are more challenging to implement in rented properties.

Social Investment: A long-term solution

The growing pool of investors supporting SASH II reflects a collective commitment to achieving long-term social impact. The fund is backed by a diverse group of socially minded investors, including the Scottish National Investment Bank, University of Edinburgh, Better Society Capital, Greater Manchester Combined Authority, Garfield Weston Foundation, Church of England, Skagen, and new investors such as the John Laing Charitable Foundation, The Linbury Trust, and The 29th May 1961 Charitable Trust. These investors share the understanding that social investment is key to driving positive change in the housing sector.

Charities like Simon Community Scotland have already benefited from previous rounds of SASH funding. Blue Triangle, for instance, secured £4.9 million to purchase over 60 homes in southern Scotland, providing stable housing for vulnerable adults. These examples demonstrate how social investment can address the rising demand for supported housing, empowering charities to have greater control over the homes they provide.

Act Now: Limited window for funding

With up to £18.5 million allocated specifically for supported housing in Scotland, SASH II offers a unique opportunity for charities. However, time is of the essence—the fund closes to new commitments in March 2026, and much of the capital has already been allocated.

Charities are encouraged to apply without delay to secure the funding they need to expand their housing provision. This is more than just an opportunity for financial support—it is a chance for charities to take control of their housing provision and, in doing so, create long-term stability for the people and communities they serve.

Social investment is an invaluable tool in building resilience, securing housing, and improving outcomes for vulnerable individuals. With SASH II, Scottish charities could invest in their future while addressing one of the most pressing social issues of our time.