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Scottish minister unveils measure to boost supply of rented homes

Words: Roger Milne
Rent / iStock

Plans for a new Scotland-wide housing initiative that could help deliver thousands of purpose-built homes for private rent have been unveiled.

The Private Rented Sector (PRS) Rental Income Guarantee scheme would see the Scottish Government sharing a proportion of rental income risk associated with large-scale new developments.

The guarantee is intended to compensate owners for a financial shortfall in qualifying projects arising as a result of lower than projected rental income.

The expert panel on the government’s PRS Working Party estimates the guarantee could directly support construction of 2,000 additional homes in the new build-to-rent sector, and has the potential to deliver thousands more when combined with other measures.

Planning and social justice secretary Alex Neil said: “This government is determined to boost the supply of housing across all tenures, helping create vibrant, dynamic neighbourhoods that comprise the quality, warm and sustainable homes our country needs.”

The announcement came shortly after the Scottish Government responded to a report from an independent group that was established to investigate national housing policy.

Further details on the scheme can be found on the Scottish Government's website.