Sustainable communities created through housing-led regeneration

The Scottish National Investment Bank hosted an event focusing on housing-led regeneration as a solution to Scotland’s housing emergency, where investors, developers, and public sector leaders discussed collaboration and innovation. Nicola Douglas, executive director of sustainable investment at the Bank, stated housing is central to its mission of transforming communities, with £1.2 billion invested in Scottish projects, including £185 million in housing. The Bank’s recent investments include £50 million for L&G’s Build to Rent Fund, supporting high-quality private rental homes, and £60 million for New Avenue Living’s fund, which aims to build 1,500 energy-efficient, mid-market rental homes near Scottish city centers. Another £50 million was allocated to Octopus Capital’s Affordable Housing Fund, delivering energy-efficient homes while expanding the company’s presence in Scotland. Douglas stressed the importance of both large-scale developments and smaller SME-led projects, noting that social housing tenants transitioning to first-time buyers helps free up homes for others. The Bank acts as a bridge between public and private sectors, facilitating regeneration through shared goals. James Bailey, PwC’s housing lead, shared best practices from UK regeneration projects, including Square Roots’ London developments and a collaboration with Homes England, Capital & Centric, and Swiss Life to support SME developers. He emphasized the need for public sector flexibility and private capital engagement, acknowledging differing risk appetites among stakeholders. Participants agreed that trust, patience, and partnership are essential to unlocking Scotland’s housing potential, balancing investor returns with social impact. The event underscored the role of public-private collaboration in addressing Scotland’s overlapping housing pressures.