Glasgow housing associations are borrowing £100,000 to construct affordable homes

GLASGOW: Over the next five years, the council wants to see 6,500 affordable houses built in Glasgow, but the cost of borrowing money to accomplish that goal is driving up rents. (Reported by news source)

Elaine McDougall, a Labour councilwoman, claimed that having to borrow money can increase rent. She made the statement yesterday during a City Administration Committee meeting when council members unveiled their plans to build 6,500 affordable houses by the year 2028.

They decided to request £535 million from the Scottish Government as it gets ready to publish its Strategic Housing Investment Plan in order to deliver the dwellings.

Some housing association properties, according to councillor McDougall, are "coming in very costly" at £200,000. The registered social landlords, she noted, "have to borrow private finance, which drives up the rents."

There are ongoing conversations with the Scottish Government about helping the registered social landlords, according to housing convenor Councillor Kenny McLean, SNP.