Housing Fund Scotland

The Housing Fund for Scotland is the first of its kind. Launched in 2014 with a £30m cornerstone investment from Falkirk Council Pension Scheme, it offers institutional investors the opportunity to invest in long-term, low volatility returns from housing infrastructure, which in turn can help to stimulate local economies and communities.


Scotland has suffered a consistent undersupply of housing since the global financial crisis, as well as rapidly rising private rented sector demand. The Fund invests in a blend of social, affordable and market rented housing in selected locations across the country.

Investment Objective

In the affordable housing sector, the Fund purchases properties which are subject to “Section 75” obligations and lease them to housing associations, who will manage the properties and pay a net head lease rent to the Fund.  This will provide capital to housing associations which can then be used to finance new supply. Some existing units may be acquired, or the fund may forward commit for new completions.

Target Fund Size

£30 Million

Fund Structure & Governance

The Fund is structured as an Exempt Property Unit Trust. It is closed-ended, with a life of 10 years, but with the option for investors to extend it.

Investment Strategy

The Fund can invest in new build private rented property, buying from national and regional developers, potentially alongside sites where affordable assets are being acquired.

The Fund has also provided debt finance to registered social housing providers, which can be used to finance new social housing provision, alongside Scottish Government grants.

This fund is advised by

Hearthstone Investment (Scotland) Limited

Regulatory oversight is provided by NCM Fund Services, as FCA regulated Fund Manager. Hearthstone Investment (Scotland) Limited are appointed as investment adviser.

Our Team

Stuart Springham, MRICS

Fund Manager

For more information about Housing Fund Scotland please get in touch
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