The programme focuses on delivering mid-market rent housing to support households who struggle to access social housing, buy a home, or afford private rents. It offers long-term, stable income opportunities for institutional investors.
Mid-market rent housing fund
Project description
The Scottish Government is launching a major long-term investment programme to deliver 2,800 new mid-market rent homes across Scotland. Backed by £100 million of government funding over several years and seeking to raise a further £400 million from institutional investors, the new fund aims to expand high-quality, affordable rental housing for low- to moderate-income households.
Finer details
The Government is seeking to raise £400 million of private capital, supported by £100 million in public seed funding. The target fund size is at least £500 million, designed to finance the construction of 2,800 new mid-market rent homes nationwide.
The programme was announced in the 2024-25 Programme for Government and following market testing, will move to the commissioning stage to appoint a fund manager
The Scottish Government is leading the programme as part of its strategy to leverage greater private investment into affordable housing. The model builds on the successful Thriving Investments partnership, which has already expanded to deliver over 1,200 MMR homes.
This subsector supports the creation of high-quality, affordable rental homes for households on low-to-moderate incomes, improving access to stable accommodation while ensuring long-term returns for investors.
Last updated: 24 November 2025
Opportunity summary
This is a significant opportunity for institutional investors to partner with the Scottish Government in expanding Scotland’s mid-market rent housing supply. With a target of 2,800 new homes and a fund size of at least £500 million, the programme aims to deliver stable, long-term rental income backed by strong demand.
Built on the proven Thriving Investments model, the programme offers a scalable platform for impactful and commercially attractive investment.
Partners
Providing £100 million in seed funding and leading delivery as part of a wider strategy to increase affordable housing supply and attract private capital.
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