Responding to calls from the sector for better access to appropriate finance, the programme has been created to offer affordable loans to develop new affordable housing, including both social and mid-market rent.

Benefits to you

Allia can offer unsecured loans for between 5 and 10 years. The interest rate is fixed for the life of the loan, with no re-pricing at any time. There are no interest payments or capital repayments during the life of the loan, everything is repaid at the end. There are no fees for borrowers to pay either as Allia’s costs are met by the Scottish Government.

Benefits for Scotland

Only a tiny fraction of the interest paid by borrowers will go back to the Scottish Government – the remainder will be released to Housing Associations as grant for the construction of social housing. This will provide about £5m-£7m worth of additional homes for social rent, which the Scottish Government considers to be central to its ambition of creating a fairer Scotland.

To find out more contact Daniel Carrico, head of origination at Allia, scottish.homes@allia.org.uk or on 0845 456 2431. More information can be found on Allia’s website http://allia.org.uk/what-we-do/scottish-affordable-housing-loans/.

Subject to demand and future budgets the Scottish Government may continue this programme into 2016-17, as one measure to help achieve Scottish Ministers’ ambition to create a step change in housing supply. Please also contact Allia, therefore, if you are an RSL seeking development finance for 2016-17.