Case study

Long-term loan for affordable homes

How our loan terms helped a housing association make social rent homes affordable for people in need.

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Project snapshot

Development of new homes for social rent

To meet the local need for affordable, energy-efficient homes

The cause

Founded in 1970, Castlehill Housing Association was established to provide high quality, affordable homes in Aberdeen City, Aberdeenshire and Moray. Its stock of nearly 2,000 properties ranges from general needs and amenity housing, to sheltered and very sheltered homes for older people.

Through its subsidiary, Castlehill Housing Trust, the Association also provides specially designed housing for people with complex needs.

Our support

In 2019, the Association invited a number of lenders to tender for the provision of a £3.8 million loan facility, to build a total of 63 affordable, energy-efficient homes within three social housing developments.

David Lappin, Chief Executive, explains Castlehill’s choice of preferred lender: “We felt that CAF Bank was an organisation with an ethos and outlook that was similar to our own and was invested in what we’re aiming to do”.

"Rates and terms offered were favourable, and the longer-term loans allowed us to ensure rent affordability by spreading our repayments".

Golden Knowes is the first of the three developments to be completed, providing 29 new affordable homes in Banff. Plans are underway for the other two schemes, to build 24 flats in Kintore and 10 family houses in Insch.


Rates and terms offered were favourable, and the longer-term loans allowed us to ensure rent affordability by spreading our repayments

David Lappin
Chief Executive of Castlehill Housing Association


The impact

“A suitable, affordable home in the right location can change someone’s life completely by impacting positively on their health and wellbeing”, explains David.

“These properties will help people who were previously homeless or paying excessive rents, as well as those in overcrowded accommodation or where it’s unsuitable for them, perhaps due to their medical condition”.

CastlehillHA_Kintore2_980

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