Lar Celebrates a Decade in Business

Dunfermline-based Lar Housing Trust is celebrating a decade of success in helping tackle Scotland’s chronic shortage of affordable homes.

The innovative housing charity, which uses a pathfinding loan-based financial model instead of traditional grant funding, has held a number of events around the country to mark its 10^th anniversary.

Lar launched with a £55 million Scottish Government loan, which was later supplemented by a £65 million loan from Bank of Scotland / Scottish Widows, with the aim of proving a concept of a different financial model could have a considerable impact on the housing sector.

Lar now has 779 completed homes across 10 different local authority areas with a further three developments under construction. Lar provides its homes at mid-market rents, bringing huge savings for tenants. Indeed, those lucky enough to live in a Lar home save on average just over £3,600 per annum compared to prevailing market rates.

It has also undertaken a number of complex regeneration projects as part of its portfolio restoring old and abandoned buildings which breathe new life into local communities. These include high profile derelict sites at St Kentigern’s Church in Edinburgh, a former paint factory in Glasgow and the long-abandoned historic naval barracks at Port Edgar.

Lar is a product of a collaboration between the Scottish Futures Trust and the Scottish Government. Lar Chair, Ken Macintosh, said: “We were set up to help people on low wages but facing high rents. Not only are we saving our tenants more than £300 a month, but we have also shown how to do so through both new build and re-purposing old buildings.

“We are particularly grateful for the relationship we have enjoyed with local authorities around the country to help provide high quality mid-market rental homes. All this using a loan-based financial model has proved that innovative thinking can have a major impact helping to address the shortage of affordable homes across Scotland and it is good for the public purse as the loan is repaid.”

Lar’s first funding pipeline of £120 million has now been fully allocated or spent and Chief Executive, Mikko Ramstedt, who at the outset was one of the architects of Lar’s financial model and business case, added: “We have lots to look forward to in the next phase of our development as a major force in the housing sector. This includes a number of complex regeneration projects as we repurpose derelict and abandoned buildings.

“Our impact for tenants is also considerable and our staff will continue to work hard on their behalf ensuring they have safe, warm and high-quality homes to live in.”

Lar currently has 36 staff and now has two subsidiary companies looking after the development and construction side of the organisation as well as the property management arm. A new service was launched earlier this year targeting portfolio landlords to help them let and look after their properties.