FOI/202600514613 · FOI · not held
Information regarding mid-market rent (MMR) properties within Hilton Garden City Rosyth development: FOI release
Information requested
I am writing to make a request under the Freedom of Information (Scotland) Act 2002 in relation to the Hilton Garden City development in Rosyth, Fife.
I am seeking information relating to the funding, agreements, and policy framework underpinning the Mid-Market Rent (MMR) properties within this development and their subsequent transition to social rent upon re-let.
Please provide the following information:
1. A copy of the funding agreement(s), grant conditions, or contractual arrangements between the Scottish Government (or its agencies), Fife Council, the Scottish Futures Trust, and any developer or housing association involved in the original delivery of the Hilton Garden City development, insofar as these relate to Mid-Market Rent properties.
2. Details of any grant conditions or contractual provisions that require:
Existing tenants to remain on Mid-Market Rent tenancies Properties to convert to social rent upon becoming vacant The maintenance of different rent structures within the same development over time
3. Any documentation, guidance, or correspondence that sets out the rationale for allowing a mixed tenure approach within the same development, where identical properties are let at different rent levels depending on tenancy start date.
4. Any internal guidance, policy documents, or correspondence held by the Scottish Government, Fife Council, or relevant partners that address:
Rent setting for Mid-Market Rent properties within this scheme Transition from Mid-Market Rent to social rent Whether any review mechanism exists in relation to rent disparities between tenants occupying comparable properties
5. Any communications or reports relating to the Hilton Garden City / Stewart’s Quarter development that reference:
The change in tenure from Mid-Market Rent to social rent for vacant properties Oversight, compliance, or monitoring of the grant conditions associated with the development
If any of the requested information is exempt from disclosure, please specify the exemption(s) relied upon and provide as much of the information as can be disclosed with appropriate redactions.
I would prefer to receive the information electronically.
Response
The Scottish Government has carried out searches of its records, and this response sets out all information held by the Scottish Government that falls within the scope of your request. Where information is not held, this is stated explicitly in accordance with FOISA.
It might help if I explain that the Scottish Government was not a member of the Limited Liability Partnership (LLP). The members of LLP that delivered the National Housing Trust (NHT) development at Rosyth were Fife Council, Kapital Residential Limited and the Scottish Futures Trust Investments Limited. The Scottish Government provided a financial guarantee to Fife Council until the point at which the development exited the NHT programme (Feb 2022). Rents were determined at the outset and controlled within the parameters of the guarantee agreement. Once the development exited NHT, rent setting then became the responsibility of Kingdom Housing Association.
Question 1 – Funding agreements and contractual arrangements
You asked for copies of funding agreements, grant conditions, or contractual arrangements between the Scottish Government (or its agencies), Fife Council, the Scottish Futures Trust, and any developer or housing association involved in the original delivery of the development, insofar as these relate to MMR properties.
The Scottish Government holds the following documents in relation to its involvement in the Hilton Gardens development:
Attachment A - Guarantee Agreement Attachment B - Floating Charge Attachment C - Inter‑Creditor Agreement Attachment D - On‑lending Consent – 62 units Attachment E - On‑lending Consent – 36 units Attachment F - Offer of Grant and covering letter Attachment G – Ministerial submission Attachment H – Policy lines Attachment I – Email to Fife Council.
These documents are provided with this response.
The Scottish Government does not hold any wider development agreements such as construction contracts, or local delivery arrangements between Fife Council, the LLP, developers, or housing associations beyond the documents listed above. Such documents may have been held by the LLP, Fife Council, or relevant delivery partners. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold that information.
Question 2 - Grant conditions or contractual provisions relating to tenure and rent You asked for details of any grant conditions or contractual provisions requiring:
Existing tenants to remain on Mid‑Market Rent tenancies Properties to convert to Social Rent upon vacancy The maintenance of different rent structures within the same development
The offer of grant (Attachment F) sets out the contractual provisions relating to tenure and rent.
The Scottish Government does not hold any information on the maintenance of different rent structures within the same development. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold that information.
Question 3 – Rationale for mixed tenure within the same development
You asked for documentation, guidance, or correspondence setting out the rationale for allowing identical properties to be let at different rent levels depending on tenancy start date.
Please see the Ministerial submission (Attachment G) relating to the exit strategy for the Rosyth development. This explains that Fife Council, on behalf of its appointed nominee (Kingdom Housing Association), requested an approach whereby:
vacant properties were converted to social rent, while existing MMR tenants would remain on their existing tenancy terms.
The Scottish Government also holds information explaining the rationale for the conversion of vacant properties to Social Rent at the Hilton Gardens development (Attachment H).
Question 4 – Internal guidance, policy, or correspondence on rent setting and review You asked for internal guidance, policy documents, or correspondence held by the Scottish Government:
rent setting for MMR properties; transition from MMR to Social Rent; and any review mechanism relating to rent disparities between comparable properties.
The link below relates to published SG guidance issued to all local authorities and registered social landlords and includes information on MMR rent setting.
Annex C - Affordable Housing Supply Programme (AHSP): process and procedures MHDGN 2023/01 - gov.scot
Details on the rent setting for Hilton Gardens is included in Attachments A and I.
Details on the transition from MMR to Social Rent can be found in the grant letter and covering letter (Attachment F) and the submission to Ministers (Attachment H).
The Scottish Government does not hold documents relating to rent review mechanisms within the Hilton Gardens development. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold that information.
Question 5 – Communications or reports on tenure change and compliance
You asked for communications or reports relating to the Hilton Gardens development that reference:
the change in tenure from Mid‑Market Rent to Social Rent for vacant properties; and oversight, compliance, or monitoring of grant conditions.
The Scottish Government holds information that reference the conversion of vacant properties to Social Rent, the rationale for this approach and grant conditions. This information can be found in Attachments F and H.
About FOI
The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.
Detected exemption language
Any communications or reports relating to the Hilton Garden City / Stewart’s Quarter development that reference: The change in tenure from Mid-Market Rent to social rent for vacant properties Oversight, compliance, or monitoring of the grant conditions associated with the development If any of the requested information is exempt from disclosure, please specify the exemption(s) relied upon and provide as much of the information as can be disclosed with appropriate redactions. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold that information. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold that information. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold that information.