The Scottish Government has come under fire for allegedly neglecting rural communities after it was revealed that only 17 homes were approved under its £25 million key worker housing fund. This revelation has sparked criticism from rural advocates and business organisations, highlighting the ongoing challenges faced by Scotland’s countryside in accessing affordable housing.
The £25 million fund, intended to provide affordable housing for essential workers in rural areas, has fallen far short of expectations. With just 17 homes approved, questions are being raised about the effectiveness of the scheme and its impact on rural communities struggling with housing shortages.
Scottish Land & Estates (SLE), a rural business organisation, has been vocal in its criticism of the government’s approach to rural housing. Anna Gardiner, SLE’s Housing Policy Adviser, stated: “Scotland’s rural communities are being short-changed by the flawed criteria for urban-rural classifications. Not only do they receive a lower proportion of funding in the first place, but the funding they are receiving is now being spent by city local authorities. This is a wholly unacceptable revelation that must be addressed urgently.”
Adding to the controversy, a recent Freedom of Information Request revealed that since 2018, £104.8 million of funding earmarked for rural housing developments has been granted to Edinburgh and Aberdeen city councils. This misallocation of funds has further exacerbated the housing crisis in rural areas.
Tim Eagle, the Scottish Tory spokesperson for rural affairs, criticised the SNP: “The SNP are continuing to scandalously neglect the housing needs of rural Scotland.
“They announced this scheme to much fanfare but progress on delivering homes has been painfully slow. For only 17 homes to be identified through a scheme worth £25 million beggars belief.”
“SNP ministers need to urgently explain why so few homes have been delivered through this fund that was launched over 18 months ago.”
Housing minister Paul McLennan detailed that out of the 17 homes, seven are located in the Highland Council area, seven in Orkney, two in Moray, and one in North Ayrshire. The scheme aims to enable councils and social landlords to purchase existing properties for essential service workers, but it is “demand-led”, with ongoing discussions about additional homes, the minister explained.
McLennan defended the government’s position, stating: “We recognise that good quality, affordable housing is essential to help attract and retain people in rural and island communities and the 2025-26 draft budget allocation of £768 million for affordable housing will help support the delivery of 110,000 affordable homes by 2032.”
“”At least 10% of these will be in rural and island areas backed by our Rural and Islands Housing Action Plan.”
“Through the Affordable Housing Supply Programme, the Scottish Government has delivered over 10,000 affordable homes in rural areas including over 1,100 in island communities between April 2016 and March 2023.
“Demand-led funds such as the rural and islands housing fund and rural affordable homes for key workers fund are also a key part of our approach to addressing specific rural and island housing issues with up to £25 million available to local authorities and registered social landlords over a five-year period to purchase housing for key workers where required.”
