The Scottish Government has announced a significant investment of £100 million to support the construction of 2,800 mid-market rent homes. This funding will be combined with institutional investment, such as pension funds, to reach a total of at least £500 million.

The investment is part of the government's strategy to leverage private sector funding and maximise the impact of public resources in delivering affordable housing. It builds upon the success of the Thriving Investments model, which has grown an initial investment of £47.5 million to £222.5 million, resulting in the development of up to 1,200 mid-market homes across Scotland.

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Mid-market rent is an affordable housing option designed to assist households with low to moderate incomes. It provides an alternative for those who struggle to access social rented housing, purchase their own home, or rent privately.

Housing Minister Paul McLennan said: "Tackling the housing emergency requires a collective effort and bold decisions. We already have a strong track record in housebuilding in Scotland and this commitment will ensure public funds are used more efficiently.

"Since 2007, we have supported the delivery of more than 133,000 affordable homes, including more than 94,000 social rented homes. However, we know we can do more to tackle the housing emergency and encouraging more private investment into the sector is one key aspect of that.

"This new model will encourage more private investment into the mid-market sector that we know is willing and able to invest and it will deliver affordable homes that people need."