New housing to be created in Highlands as part of £55m funding package
New homes will be created in Thurso and other parts of the Highlands as part of a £55 million boost for Cairn Housing Association.
The funding package from Royal Bank of Scotland will allow the association to re-finance existing loans, enhance home interiors and take forward its pipeline of prospective developments.
Cairn, which has more than 3500 homes in its portfolio, provides affordable accommodation as well as landlord services. It operates across 24 local authorities in Scotland, with a significant presence in the Highlands.
More than half – £30 million – of the funding has been earmarked to upgrade 1200 kitchens and bathrooms, as well as improving the energy efficiency of 700 homes with renewable energy initiatives and new heating systems that will also reduce fuel poverty.
The remainder will be used to support the construction of more than 600 new homes across the Highlands and the central belt, with new developments in Aviemore, Thurso and Falkirk already under way.
Cairn was established in 1989 and employs 190 staff.
Derek Adam, director of finance and people services, said: “We are incredibly proud to provide quality, safe and affordable homes throughout Scotland, helping to enhance communities and foster strong relationships with a variety of key stakeholders and partners.
“The funding we have received from Royal Bank of Scotland has helped accelerate our future growth plans as we press ahead with the development of significant new housing schemes across Scotland, creating much-needed affordable housing options. We’re now primed for a strong future with confidence that we can upgrade the homes of our tenants.”
Last year, NatWest Group – of which Royal Bank of Scotland is a part – announced that it would be investing £3 billion in social housing across the UK over the next three years which will be used to support the construction of 20,000 homes.
David Horne, the bank's housing finance director, said: “Working with Derek and his team has been incredibly rewarding and builds on what has been a long-term partnership between Cairn Housing Association and the Royal Bank of Scotland. Their commitment to providing high-quality, accessible homes and creating thriving communities is evident and this will have a positive impact on the lives of the association’s tenants.
“We enabled a flexible funding structure that utilised our long-dated loan offering, which will allow Cairn to progress with their ambitious business objectives over the next 10 years and beyond, helping them increase their tenant portfolio even further.”