Housing Options Guide

Low Cost Home Ownership Opportunities (LCHO)

Communities Scotland co-ordinates the award of a grant called GRO-grant, which is available to private housing developers, housing trusts (not registered housing associations) and building societies to contribute towards the cost of providing houses for owner occupation. The housing for sale provided by such a grant may be new build or provided following the renovation of existing buildings.

There are three types of projects, which Communities Scotland may be prepared to support:

Projects which contribute to tenure diversification by introducing or increasing owner occupation in priority housing estates of neighbourhoods as part of an area –based regeneration programme.
Projects which contribute to regeneration programmes in older urban neighbourhoods, particularly where these are characterised by a limited supply of good quality houses owner occupation or by limitations in the range of available house sizes and types relative to demand.
Projects which contribute to the provision of housing for owner occupation at affordable prices in pressured market areas (usually in rural locations) where the supply of such housing is limited in quality, or access for lower income households wishing to become occupiers which is constrained by market forces.

Grants are limited to the minimum necessary to secure the success of the project. The internal rate of return to the developer must fall between 8 to 12%. Grants of up to 40% of the total project costs are available, although the overall average grant approved is about 25%. Each project is appraised by Communities Scotland on its own merits.

The grants may be conditional on priority being given to Council or Housing Association tenants or those on their waiting lists, those on low income and first time buyers. Completed properties are generally advertised for sale by the developer, but information may also be available from the Communities Scotland Regional Office.

A comprehensive information pack is available from:

Communities Scotland
52/66 Newmarket Street
AYR
KA7 1LR
Tel 01292 611810
Fax: 01292 269095

Telephone: 0131 313 0044
Fax: 0131 479 5270
Web site www.communitiesscotland.gov.uk