THEY are the first affordable homes built in Scotland with no government subsidy in a move welcomed by Finance and Economy Secretary Derek Mackay.
The 60 houses are at Fair Acres, in the coastal town of Dunbar, East Lothian, a favourite location with commuters who work Edinburgh.
Mackay said: “I am pleased to see work starting today on 60 affordable rented homes in Dunbar. Fifty of these units will be built without any Government subsidy, with this innovative funding model accessing an ethical pension fund.
“I am also delighted to see the construction of a further 10 units for social rent by East Lothian Council, which will be supported by nearly £0.6m of Scottish Government Affordable Housing Supply Programme funding, and which will help us meet the target to deliver 50,000 affordable homes by 2021.
“This development demonstrates what can happen when the public sector and private sector work closely together”
Pupils from Dunbar Primary School were joined at the launch ceremony by East Lothian Council’s housing and community wellbeing spokesperson, Councillor Jim Goodfellow, and representatives from Robertson Group and Ross Development and Renewables, along with investors from the Co-operative Pension Fund.
They planted a tree to mark the beginning of the construction project, which is worth £6.5 million.
Robertson and Ross helped finalise the innovative funding mechanism for the development.
Mackay agreed the finance model developed by them, along with East Lothian Council, that allowed work to start on the properties. Under it, 50 of the homes are being offered for rent at mid-market rates, which is funded with private sector investment, with the remainder for social rent, funded through East Lothian Council’s capital budget.
The Co-op has agreed to acquire the homes under a 40-year lease as a long-term investment.
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