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Scottish government publishes rural and islands housing action plan

The Scottish government has published an action plan to tackle empty homes and support the development of new homes in rural areas and islands.

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Cottage in the Highlands
The government will commission a review of affordable homeownership in rural and island areas (picture: Alamy)
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The Scottish government has published an action plan to support the development of new homes in rural areas and islands #UKhousing

The action plan published this month also includes plans for managing short-term lets and second homes, and summarises ministers’ existing commitments around rural housing.

It comes with a pledge to commission a review of affordable homeownership in rural and island areas and promises to consider the case for compulsory sales orders.

The Scottish government will continue to support the Rural and Islands Housing Fund as part of the proposals, part of the wider Affordable Housing Supply Programme, with “up to £30m this parliament”.

Given the “important role” of community-led housing development, the fund will be reviewed to allow feasibility funds to be released earlier, and where required, to support local housing assessments that can help inform applications to the Scottish Land Fund.


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In August, ministers announced a package of financial support, co-funded by the Nationwide Foundation with up to £960,000 until 2026, to support the Communities Housing Trust and South of Scotland Community Housing to develop affordable housing projects.

The action plan said ministers would continue to work with the Scottish Empty Homes Partnership to bring more empty homes back into use and share best practice between empty-homes officers working across rural and island areas.

Independent research will be commissioned to support a review of affordable homeownership in rural and island areas, while the designation of short-term let control areas will be monitored to understand how these have enabled councils in different locations to manage the number of short-term lets.

A more comprehensive update about the implementation of short-term lets regulation, covering both planning and licensing, for different types of short-term lets will be carried out in 2025.

The action plan also said the Scottish government would reform and modernise compulsory purchase legislation and “consider the case” for compulsory sales orders.

The Scottish government has committed to delivering 110,000 affordable homes by 2032, of which 10% will be in remote, rural and island communities.

In April, first minister Humza Yousaf allocated £25m from the government’s existing affordable housing programme to help councils buy affordable homes for key workers in rural communities.

Housing minister Paul McLennan said: “The rural and islands housing action plan includes a range of commitments which will be taken forward with public and private sector partners to deliver the right homes in the right places, generate sustainable local economic growth and help rural and island communities to thrive.

“This plan supports Scotland’s long-term housing strategy, Housing to 2040, and will help bolster the commitment to deliver 110,000 affordable homes up to 2032, of which 70% will be for social rent and 10% in rural and island areas. It has been informed by extensive engagement with a wide range of organisations representing rural and island housing interests.

“Despite the challenges we face due to Brexit and high inflation, this plan demonstrates our continued commitment to supporting families, communities and businesses, and to unleashing the full economic potential of our rural and island areas.”

In response to the plan, Sally Thomas, chief executive of the Scottish Federation of Housing Associations, said “we are concerned that this plan does not go far enough” in terms of “secure, sustained investment in delivering a steady supply of social housing in remote, rural and island communities”.

She added: “We want to see new and increased investment in the Rural and Islands Housing Fund as part of the Affordable Housing Supply Programme, bolder efforts to address rural construction capacity, skills and supply chain challenges, as well as concerted efforts to tackle the fuel poverty that is disproportionately high in rural Scotland.”

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