How the model works
Following the success of the original NHT model for councils and developers, SFT and Stirling Council, in conjunction with the Scottish Government, developed a local model of NHT which offers further flexibility for councils.
The ‘NHT council variant’ follows the same basic principles as the original NHT model but places the council (rather than the developer) at the heart of a partnership which is set up to own, manage and maintain the homes for mid-market rent. The partnership (in the form of an LLP) has only SFT and the council as members and offers councils greater control in relation to the homes delivered under the initiative. The model is supported by a capped Scottish Government revenue-only guarantee.
The NHT council variant has only one LLP per council area and gives councils flexibility as to when homes enter the initiative. Councils can propose homes for the LLP to acquire including both new build homes and homes purchased from owners in the secondary market. The homes must be available for rent for between five and 10 years, after which time the council can determine what happens to the homes (for example open market sale, sales to sitting tenants, or retaining the homes for use as housing in perpetuity). As with the original model, while homes are part of the NHT initiative they are let by the LLP on Scottish Short Assured Tenancies.
Delivering the council variant model
Contracts have been signed in Aberdeenshire, Scottish Borders and Stirling to deliver up to 535 homes through this version of the initiative.