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Scottish housing charity to close over ‘lack of funding’

A national Scottish housing charity is to close after more than 20 years in existence.

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Isle of Mull
Rural Housing Scotland is based on the Isle of Mull (picture: Alamy)
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Scottish housing charity to close over ‘lack of funding’ #UKhousing

A national Scottish housing charity is to close after more than 20 years in existence #UKhousing

Rural Housing Scotland (RHS) has announced it will shut down as a result of “significant financial challenges” due to a “lack of sufficient funding in recent years”. 

The Isle of Mull-based charity, which was established in 2001, campaigns to secure money for affordable housing in rural Scotland and supports community action on rural housing issues. 

Wendy Reid, chair of RHS, said: “The challenges facing rural housing have not diminished, and it is with heavy hearts that we are announcing the closure of Rural Housing Scotland.

“However, we are proud of the role RHS has played in shining a light on these critical issues and raising awareness among policymakers and the public.”


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RHS’ last filed accounts at Companies House, covering the year to the end of March 2023, showed that the organisation received £242,284 in income, while its expenditure rose to £195,425. 

The accounts, published in January, said the charity was “undertaking a strategic planning process” due to the retirement of its chief executive Derek Logie. 

Scottish Land & Estates (SLE), a campaign group for rural businesses, said it was disappointed by news of RHS’ closure and that it should be a “wake-up call for the Scottish government”. 

Patrick Colquhoun, vice-chair (policy) at SLE, said RHS had made a “meaningful difference in supporting rural communities to secure affordable housing”.

He added: “Earlier this year, the Scottish government published a depopulation action plan and it seems incredibly short-sighted that a charity trying to address one of the root causes of depopulation finds itself unable to continue operating.”

In May, the Scottish government declared a national housing emergency.

Mr Colquhoun said the “closure of lifeline services on the frontline of tackling this emergency would suggest that things are only getting worse, with a disproportional impact on rural communities”.

A Scottish government spokesperson said it recognised the support that RHS has “provided in supporting communities to progress rural housing projects”. 

They added: “We remain focused on delivering 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% in our rural and island communities.

“This is backed up by our Rural and Islands Housing Action Plan and demand led funds such as the Rural and Islands Housing Fund and the Rural Affordable Homes for Key Workers Fund.”

In April last year, then-Scottish 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.

Earlier this month, charity Community Land Scotland called on politicians to establish a right for young people to live in the community where they grew up.

Last month, official figures showed that the number of new social homes completed in Scotland has fallen by a quarter in the past year to 5,053. 

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