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Scottish govt urged to support mid-market



The Scottish government has been urged to support the mid-market rental (MMR) sector, after new research highlighted the economic and social benefits these dwellings create.


Prepared by Turley, it was found that 2,959 MMR homes in Scotland had created £530m of investment in the country’s construction sector and generated £186.3m in GVA.

Across 12 local authority regions in Scotland, these units housed 6,230 residents with £77m annual earnings for residents and creating £5.9m in annual council tax payments.

These units have been delivered by together, HHA, Lar Housing Trust and Thriving Investments.

MMR homes are typically aimed at those with modest incomes who have difficulty accessing social rented housing, renting privately or buying their own home.

Tenants are typically aged between 25-34 with a gross household income of £15,000 to £60,000 —they tend to be employed in the NHS, emergency services, armed forces and social care.

“The housing emergency continues to hang over the sector and unfortunately, we are a long way from balancing supply and demand for homes,” said Gail Matheson, CEO at HHA.

“However, this report shows the value MMR homes create both in local communities and at a national level.

“Its unique model is an important tenure in our housing mix, and I am hopeful that we see more investment earmarked to deliver it at a larger scale across the country.”

Using this research, those in the MMR space now want the Scottish government to better support this sector.

Turley estimates that if the Scottish government helped fund the development of 4,500 MMR homes over the next five years, it would create 2,880 jobs and generate £181m for the economy throughout their construction.

Ann Leslie, CEO of Lar, added: “To tackle the housing crisis gripping the country and reduced housing grant budgets, we need a bold and innovative approach offering a mix of funding options to help provide more affordable homes.

"This report shows that loan based funding must be front and centre of any drive to build more affordable homes offering multiple benefits, including repurposing derelict buildings, creating new communities and breathing life into local economies. Now is a time for leadership from the Scottish government.”

July’s general election saw sweeping changes across Scottish constituencies. The Scottish National Party lost many of its 48 seats, leaving it with nine.

Reflecting the broader UK theme, many of these seats went to Labour MPs. However SNP MP John Swinney, first minister of Scotland and head of the Scottish government, retained his seat.

 



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