News article 8/07/2013

(Issued 8 July 2013)

Homes for Scotland has announced the appointment of experts in housing finance from the world renowned Cambridge Centre for Housing & Planning Research and LSE London to assist a sector-led group to identify and attract new sources of investment to help expand Scotland’s rental sector.

With an estimated 465,000 new homes needed in Scotland by 2035 to cope with expected housing demand, the expert project team, headed by Homes for Scotland and backed by the Scottish Government, Scottish Development International and Construction Scotland, believes that the targeting of pension funds and other institutions could help deliver new, high quality, sustainable homes at significant scale, protecting jobs and stimulating activity in the home building sector.

Homes for Scotland Chief Executive Philip Hogg said:

“The rental sector has a key role to play in meeting Scotland’s diverse housing needs but, given continuing economic constraints, we need to look at ways we can attract additional finance to help increase housing investment.

“To do this effectively, we first need to fully understand the needs of investors and develop an approach that will attract them to the Scottish residential market. This is what the team from the Cambridge Centre for Housing & Planning Research and LSE London will be assisting us with.

“Both centres of excellence and world renowned in their own right, they bring together a range of specialist skills, knowledge and experience from two of the institutions most directly involved in current research on the rented sector and financial models, both in the UK and internationally.”

Professor Christine Whitehead from LSE London said:

“We look forward to working with Homes for Scotland on this important piece of research. Whilst it has proved challenging to get institutional involvement in the past we are encouraged by the prospect of a changing environment in which to develop and grow this vital sector.”

Professor Peter Williams of the Cambridge Centre for Housing & Planning Research said:

“Institutional investment is an issue of great importance and this research will help to clarify the opportunities available to encourage significant, sustainable investment in Scotland’s rental sector.”

Scottish Enterprise Director of Sustainable Construction Alistair McKinnon said:

“Securing a strong funding mechanism early in Scotland will act as a powerful catalyst for both trade and investment.

“Scottish Enterprise and Scottish Development International welcome the developing model and will support this approach.

“Working in partnership with Construction Scotland, our aim will be to maximise the competitive advantage this will bring to Scotland through encouraging growth of capability and capacity within the Scottish supply chain to service the Scottish and broader UK markets as well as niche areas internationally."

Deputy First Minister Nicola Sturgeon said:

"This industry-led project will look at ways to attract additional finance into the house-building sector by targeting pension funds and other institutions.

“Through identifying and seeking to overcome barriers to securing this investment the project has the potential to unlock millions of pounds of new finance, support jobs and boost the supply of new, high quality rented homes across Scotland.

“I am delighted to be able to support this cutting-edge project which is firmly focused on supporting the growth of Scotland’s housing industry.”

Notes to Editors:

1. Homes for Scotland (www.homesforscotland.com) represents companies which together provide 95% of all new homes built for sale as well as a significant proportion of affordable housing.

2. Further information and updates on the project can be accessed via the Homes for Scotland website here.

3. The expert group examining ways to attract new sources of investment to help expand Scotland’s rental sector includes representatives from Homes for Scotland, Scottish Government, Scottish Futures Trust, Places for People, Scottish Widows Investment Partnership, Grosvenor, Construction Scotland, Scottish Enterprise and Scottish Development International.

4. To access the Scottish Government press release announcing the project, visit:
http://www.scotland.gov.uk/News/Releases/2013/05/pension-funds.

5. The Cambridge Centre for Housing and Planning Research is a research centre within the Department of Land Economy, University of Cambridge currently led by Peter Williams. It has an international reputation as a leading academic research institution in the fields of housing finance and policy and particularly in the interface between housing and land use planning.

6. LSE London is a major research centre within the London School of Economics concentrating on urban, finance and housing issues in particular. The London School of Economics and Political Science (LSE) is one of the foremost social science universities in the world. Its research and teaching span the full breadth of the social sciences, from economics, politics and law to sociology, anthropology, accounting and finance.