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Scottish housing association receives £19m from major bank
A Scottish housing association has received £19m in funding from a major bank.
Eildon Housing Association, based in the Scottish Borders, announced the £18.7m funding injection from the Royal Bank of Scotland (RBS).
The 3,000-home landlord aims to build 800 new homes by 2028 under its five-year development programme.
RBS said the funding will support Eildon’s development of new houses and the growth of the housing association’s care services and sustainability strategy. This includes residential-based older people’s housing and care services as well as support for adults with learning disabilities.
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The housing association is also planning to invest in improving energy efficiency within its homes. During 2023-24, Eildon installed green heat systems, solar panels and battery storage at 30 properties in Hawdene, Broughton. The project saw a total investment of £1m, including £500,000 match funding from the Scottish government’s Social Housing Net Zero Heat Fund.
Eildon recorded a post-tax surplus of £161,000 in 2023-24, down 90% from £1.7m the previous year, which the housing association attributed to “accounting movements” and delays in the planned completion of some new homes.
Last year RBS’s parent company, NatWest, announced a £5bn lending ambition to the social housing sector by the end of 2026. As of August 2024, NatWest had already lent £2.8bn to the sector across the UK, including a £96m loan to Grampian Housing Association in Scotland to finance the development of 1,000 new homes.
Lynn Mirley, director of business support at Eildon Housing Association, said: “Securing this deal with RBS allows us to help alleviate some of the pressures the current economic climate is placing upon local communities.
“It is important to us to have this sort of backing as it demonstrates the confidence in Eildon Housing Association’s ability to continue to make a real difference in people’s lives.”
Martin McCourt, real estate finance relationship director at RBS, said: “We recognise the importance of supporting organisations that make proactive change within our society.
“We have committed to supporting the housing industry in alleviating the current strain faced by local authorities and residents caused by the housing crisis. We look forward to seeing the fulfilment of Eildon Housing Association’s strategy as they continue to tackle these challenges.”
