The neglected community of small and medium size enterprise (SME) builders in Scotland has been given another vital boost by Scotland’s investment bank.
Edinburgh-based house builder, Whiteburn Projects Ltd has secured over £5m to help unlock the development of 110 homes in Lauder, with £3.85m debt from the Scottish National Investment Bank alongside equity support of £1.24m from Housing Growth Partnership (HGP).
Small and medium enterprise (SME) builders, such as Whiteburn, have struggled to access finance due to a challenging macroeconomic environment while being met with rising costs associated with residential development. The number of SME housebuilders operating in Scotland has fallen to its lowest level in 20 years.
The housing industry body, Homes for Scotland has been at the forefront of arguing for better financial support for SME builders across Scotland.
The deal is similar to the initial partnership the bank announced with Whiteburn late last year. These investments will support the construction of 83 private homes in Lauder, alongside an additional 27 affordable homes that will be owned and managed by the Scottish Borders Housing Association.
Whiteburn is an award-winning independent homebuilder which uses local supply chains to deliver homes and enhance communities.
Through this investment and the Peebles development, which was announced in November, the Bank and HGP are supporting Whiteburn’s delivery of 133 private and 29 affordable homes in the Scottish Borders, directly addressing the Scotland’s acute housing shortage.
Eve McCurrich, managing director of Whiteburn, said: “As a leading SME housebuilder in Scotland, we are very proud to be supported by Housing Growth Partnership and to have secured further investment from the Scottish National Investment Bank. This strengthens our relationship with the Bank and gives a further boost to Scotland’s wider SME housing sector.
“The funding will enable the delivery of a total 110 new homes, which includes 27 affordable properties in Lauder, as well as supporting our supply chain and creating new jobs. I think it underpins the passion we have at Whiteburn for creating quality homes in rural communities.”
Colin Bennett, investment director at HGP, said: “Lauder is our third development with Whiteburn and second with the Bank, which will bring much-needed housing to the area across a variety of house types.
“Our investment is part of a wider regional growth initiative between HGP and Whiteburn, designed to support delivery of a pipeline of sites and we are excited to see the local impact this development will have.”
HGP (Housing Growth Partnership) is the Lloyds Banking Group and Homes England-backed equity investor focused on the UK sector. Since 2016, HGP has partnered with 91 developers across 177 schemes with 15,000 homes either sold or in development.