Albyn Housing Society signed a £40 million loan deal with the Royal Bank of Scotland (RBS) at its Annual General Meeting last night (Tuesday 17 August 2010), held at the Drumossie Hotel, Inverness.
Half of the loan will be invested into development projects around the region, equating to around 400 homes for shared equity sale or low cost rent.
Speaking at the AGM, Calum Macaulay, chief executive of Albyn Housing, said: “We have been working with RBS to renegotiate our current facility and secure additional development funding to enable us to help address the demand for affordable housing in the Highlands.
“There are currently over 10,000 people registered on the Highland Housing Register and waiting for a suitable home. This loan will help us work alongside the Highland Council and other housing associations to reduce this waiting list.
“We are committed to the development of low cost, energy efficient homes in communities around the region and to supporting and maintaining healthy communities.”
Ian Sillars, Head of Housing Finance Scotland, RBS Corporate and Institutional Banking,, said: “I’m delighted to extend a banking relationship with Albyn Housing Society which dates back to the Society’s inception in 1973.
“Our appetite to lend additional funds to Albyn Housing Society and other Scottish housing associations reflects the significant levels of unmet demand for affordable rental and shared ownership accommodation plus the further opportunities for development. As the largest lender to Scottish housing associations, we are committed to financing affordable, sustainable homes and have total loan commitments of over £1 billion to the sector.
“Lending of this type has the added value of supporting the home-building sector and some of the ancillary businesses which have been severely impacted by the economic climate over recent years. I look forward to continuing to work with Albyn Housing Society as they enter this phase of vital development.”
David Sutherland, chief executive of Tulloch Homes Group, said:"There is great and rising demand for affordable and sustainable homes in the Highlands and this Albyn funding boost will significantly help cope with this urgent need at a time when this market faces decreasing public finance due to Government cuts.
"As the largest builder of affordable homes in the area, we value our ongoing partnership with Albyn, and we congratulate them on successfully negotiating fresh development funds. We look forward to working with them in the years ahead to help young couples and families to find a home of their own."
But as he pledged to build an additional 400 homes over the next three years Mr Macaulay voiced concerns about reductions in the level of public finance available for the development of affordable housing: “Development work during 2009/10 was very successful in terms of achieving our targets.
“However, because of reductions in levels of public finance, the overall level of Housing Association Grant (HAG) spend was reduced by £1.5m compared to 2008/9. Despite this our development programme contributed more than £27 million to the Highland economy in terms of construction contracts and related development expenditure.
Albyn’s annual report for 2009/10 reveals that as well as investing into the training and development of its 72 staff, the organisation upgraded its housing stock, handed over 232 new homes and concluded 78 shared equity sales. The company also won a plethora of awards and accreditations, including Care Commission recognition for service levels and Accreditation to the Scottish National Standards for Information and Advice.
Albyn Housing Society owns over 2,500 homes for low cost rent in around 60 communities, which equates to 25 per cent of affordable homes in the region.
Mary Taylor, the new Chief Executive of the Scottish Federation of Housing Associations (SFHA) gave her views on the affordable housing sector at the AGM.
