Social and Sustainable Capital (SASC) is calling on Scottish charities to apply for funding from its Social and Sustainable Housing Fund II (SASH II). Up to £18.5m from the fund has been dedicated to support Scottish charities, enabling them to provide vital housing alongside their support services. With the fund closing to new commitments in March 2026, SASC urges organisations to start discussions now to avoid missing out. Much of this dedicated funding has already been allocated so early engagement is strongly encouraged to ensure charities can take advantage of the remaining available funds.

SASH II supports charities that provide both housing and support services by enabling them to buy and manage their own properties. This reduces their reliance on rented accommodation and offers long-term, stable homes for people they support, including those experiencing homelessness, survivors of domestic abuse, care leavers, individuals with learning disabilities, and others.

Mark Bickford, CEO of SASC, said: “At SASC, we see social investment as a catalyst for lasting change. Scotland’s progressive government policies, strong commitment to social justice, and collaborative third sector make it an ideal place for place-based investment. Through SASH II, we enable charities to gain direct control over the homes they provide, improving outcomes for tenants and building financial strength for their organisation. We encourage any charity interested in supported housing to explore how this fund can support their work—before the investment window closes.”

A Flexible Model for Charities

SASH II offers 10-year loans of £1-5 million, covering up to 100% of the property purchase price along with associated costs. Crucially, SASC absorbs both void and negative equity risk, significantly reducing financial exposure for participating organisations. This model provides long-term security for vulnerable individuals while helping charities strengthen their balance sheets, speed up delivery of housing outside of local authority processes, and lower costs through energy efficiency opportunities.

Strategic Investment Backing

SASH II is supported by a group of investors committed to social impact. These include the Scottish National Investment Bank, the University of Edinburgh, the Garfield Weston Foundation, Church of England, and Skagen. New backers joining SASH II for the first time include the John Laing Charitable Trust, The Linbury Trust, and the 29th May 1961 Charitable Trust.

While SASC’s investors ultimately bear the repayment risk, blended capital—through grants from government or charitable foundations—can further reduce financial risk for charities and improve access to this funding.

Proven Impact in Scotland

To date, SASC has deployed from this SASH II fund over £6 million in Scotland, with a further £5 million in progress. Among the beneficiaries is Simon Community Scotland, which used a £5 million loan from the first SASH fund to acquire 32 properties in Edinburgh as part of its Housing First programme. Blue Triangle, the first Scottish housing association supported by SASH II, secured £4.9 million to purchase more than 60 homes for vulnerable adults across the south of Scotland.

Dave Gorman, Director of Social Responsibility and Sustainability at the University of Edinburgh, said:
“We are proud to continue our investment in SASC’s innovative housing fund and to witness the remarkable work of Scottish charities empowering vulnerable individuals through supported housing. The impact and success of the SASH model has been inspiring.”

Susan Campbell, Director of Market Creation (Housing) at the Scottish National Investment Bank comments: “Like the Bank, SASC is an impact investor, which is why we were pleased to commit £15million to the SASH II fund.  The housing shortage in Scotland is well-known, which is one of the reasons we are pleased to support this innovative approach to place-based investment. By de-risking housing investment for charities, we are enabling them to grow their stock and support those who are experiencing homelessness and other housing needs. I encourage the relevant charitable organisations to apply.”

Final Call – How to Apply

Charities must submit their applications by the end of 2025, with all loan agreements signed by 31 March 2026. SASC recommends starting discussions 3–6 months in advance to allow adequate time for due diligence and structuring. Funds can be drawn down after the agreement date if needed.

SASH II is available to charities providing supported housing to Scotland’s most disadvantaged individuals, including those affected by homelessness, domestic abuse, substance misuse, involvement with the justice system, or transitions from care.

SASC is a member of the Commission for More Homes Scotland, a national initiative focused on delivering social investment solutions to address Scotland’s housing challenges, which has become increasingly urgent in the face of growing demand for supported housing.

To contact SASC for more information go to: info@socialandsustainable.com