Scotland’s housing crisis has reached emergency levels, as declared by the Scottish government. Shelter’s 2023/24 figures reveal a staggering 40,685 homeless applications to local authorities and a 4% annual increase in households becoming homeless. This escalating crisis demands immediate and innovative solutions.

With a household becoming homeless every 16 minutes and local authorities struggling to meet their statutory duties, this crisis necessitates a fundamental shift from traditional funding models for charities and organisations involved in providing housing solutions towards strategies that deliver lasting impact.

At SASC, we believe social investment is a powerful catalyst for transformative change. We strategically deploy capital to empower housing providers and social enterprises, enabling them to tackle the root causes of homelessness. We are not simply providing loans; we are creating enduring partnerships to help our partners build resilient communities.

A key challenge we address is the inadequacy of the conventional “landlord” model for Transitional Supported Housing (TSH). For charities and social enterprises providing vital support services, the stability of property ownership to ensure continuity for their beneficiaries can be highly impactful. However, the financial barriers, such as having to provide substantial deposits and market volatility, can be insurmountable.

Our Social and Sustainable Housing Fund (SASH I & II) provides a tailored alternative, specifically designed to address these challenges. We offer ten-year loans that cover 100% of property purchase prices and we absorb the void and negative equity risk, empowering these organisations to acquire assets without excessive financial risk. This ownership model grants them control over their properties and ensures long-term stability for the vulnerable individuals they support.

The impact of this approach is demonstrable.

Homes for Good, our first Scottish investee, exemplifies the transformative power of social enterprise in the housing sector. Their innovative lettings model, tailored to support individuals with limited housing options and complex needs, has been significantly strengthened by our strategic financial support. 

The loans we provided in 2018, 2021 and 2022, totalling £6.950 million, enabled them to expand their property portfolio, providing 118 secure, high-quality homes for those most in need in Glasgow and the surrounding area. They are setting a new standard for responsible and impactful practices within the private rented sector, demonstrating how social enterprise can drive positive change.

Homeless charity Simon Community Scotland (SCS) has also used our financial support to expand its vital services into Edinburgh, a city with a severe shortage of affordable housing. The £5m loan enabled the purchase of 30 properties, providing stable homes for individuals transitioning from temporary accommodation or rough sleeping. 
This initiative, further bolstered by a £1m contribution from the University of Edinburgh’s Social Investment Fund and a £15m commitment from the Scottish National Investment Bank to SASC’s second housing fund, highlights the power of strategic partnerships in addressing complex social challenges. 

At the core of SCS’s work is the Housing First model, which prioritises providing stable, permanent housing as the first step in tackling homelessness. Unlike traditional models requiring individuals to address personal challenges before accessing housing, Housing First acknowledges that secure accommodation is fundamental to recovery. This approach, combined with tailored support services, has been highly effective in helping individuals regain stability and independence.

Positive Steps Partnership (PSP, a Dundee-based charity providing supported accommodation, also received two social investment loans from SASC - £1.11m in 2024 and £1.65m in 2020 - to purchase properties for individuals with addiction issues, including ex-offenders. The funding enabled the charity to support more people while reducing reliance on council-owned properties and private landlords, ensuring greater long-term security and independence for the organisation.

Our latest investee in Scotland is Blue Triangle, a social care provider and Registered Social Landlord (RSL), and the first Scottish housing association to receive investment from SASH II. Operating 26 services across 10 local authorities, Blue Triangle supports over 400 people daily, many of whom are under 25 or have experienced rough sleeping. With a £4.925 million loan from SASC, Blue Triangle has purchased ten properties, with more in the pipeline, which will enable it to offer more stable, independent living options for vulnerable adults across southern Scotland. By providing safe, supportive, psychologically informed environments, Blue Triangle helps people at various stages of their support journey, offering them the time and space to reset at a critical point in their lives.

At SASC, we view ourselves as partners, not just financiers. We understand the unique challenges faced by these charities and social enterprises, and are committed to providing the financial tools and support they need to succeed. We are invested in their success, recognising that their impact directly translates to positive outcomes for vulnerable individuals and communities.

Ultimately, addressing Scotland’s housing crisis requires a multi-faceted strategy that combines public, private, and social sector efforts. Social investment plays a critical role in this ecosystem, enabling the development of sustainable housing solutions and providing hope and opportunity for those who need it most.