Scottish rural housing situation faces 'shocking neglect' despite £25m funding

No new homes have been secured to date under a rural affordable homes fund that was announced in April last year.

The Scottish Government has been accused of neglecting rural housing demands despite committing millions of pounds worth of funding to tackle the lack of affordable homes.

In a written response from housing minister Paul McLennan to the Scottish Conservatives, it has been revealed no homes have been secured through the Rural Affordable Homes for Key Workers Fund announced more than seven months ago by First Minister Humza Yousaf in his policy prospectus.

The response read: “To date no homes have been secured through funding from the Rural Affordable Homes for Key Workers Fund. Local authorities have been made aware of the demand-led fund and we expect those with rural communities to be considering and developing proposals to access the fund as part of their annual Strategic Housing Investment Plan process.”

General view of a thatched cottage on the coast on the isle of Tiree off the west coast of Scotland (pic: Andrew Milligan)

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Miles Briggs, housing spokesperson for the Scottish Conservatives, said the reply showed the Government’s “shocking neglect” of rural Scotland.

The fund, which the SNP-Green government committed £25 million to in April last year, was designed to help local authorities identify affordable homes for workers employed in sectors key to the rural economy. Ministers said it woulf be made available from 2023 to 2028 “to help to make best use of underused or empty properties by making them available for key workers and others in need”.

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Mr Briggs, however, said the lack of action so far was a sign of ministers “overpromising and underdelivering”, and that it showed meeting the demand for homes in rural Scotland was “simply not a priority” for the “Central Belt-obsessed” Scottish Government.

He has urged Mr McLennan to fully engage with local councils and “urgently” ensure homes are identified to attract people to live and work in rural Scotland.

“After announcing £25m-worth of funding, the SNP housing minister has clearly been asleep at the wheel,” Mr Briggs said. "The failure to identify these homes in our rural areas means key sectors are missing out on having the workers they need, which in turn is deeply damaging for our economy.”

In response, Mr McLennan said the Government’s commitment to deliver 110,000 affordable homes, of which at least 70 per cent will be for social rent and 10 per cent in our rural and island communities, would be supported by its new Rural and Islands Housing Action Plan.

The minister said last month that both he and Richard Lochhead, the minister for small business, innovation, tourism and trade, held a roundtable with stakeholders, including businesses and housing representatives, to discuss delivery of more homes across rural Scotland through private and public sector collaboration.

“Our upcoming Rural Delivery Plan will also set out how all parts of the Scottish Government will deliver for Scotland’s rural and island communities,” he said. "The plan will cover a range of areas, including housing, transport, population and economic development.”

Mr McLennan said the number of affordable homes completed in the past year was the highest annual figure since 2000, though he did not specify whether this was nationwide or just rural housing. He said between April 2016 and March 2023, more than 10,000 affordable homes were delivered across rural and island areas.