Housing / MSP says value of proposed rural and island housing fund seems ‘desperately low’
PLANS to develop a rural and island housing grant scheme in Scotland worth up to £20 million over four years have been announced – but Shetland’s MSP says the money will not go far enough.
The Scottish Government said the scheme is designed to help with costs in rural and island communities and will “enable people, including first-time buyers and families, to own affordable homes in the places they want to live”.
But Shetland MSP Beatrice Wishart said the money involved seemed “desperately low” given the cost of construction in the islands.
“Shetland desperately needs more homes to encourage and retain people to live and work here,” she told Shetland News.
“We can only reverse depopulation with increased investment in infrastructure including housing, a new hospital and tunnels connecting communities.
“While funding is welcome for new homes, the sums seem desperately low for what is needed to ensure quality housing across all parts of Shetland.
“Construction costs in the islands, where everything has to be shipped in, means you get less bang for your buck than you would on the mainland.
“Some new homes in areas outside of Lerwick would have a huge positive impact for people who don’t want to live in Shetland’s central belt.”
First minister John Swinney said the government is keen to ensure people can “put down roots in rural and island Scotland or move back to the communities where they grew up, so helping them to access a home is crucial”.
“We will work with partners to develop the Rural and Island Housing Grant Scheme, with an indicative budget of up to £20 million,” he added
“It will build on our positive track record in affordable housing – with 10 per cent of homes being delivered in rural and island communities – and underpin our work supporting the development of the new housing agency, More Homes Scotland.”
The government said the grant scheme will operate alongside the £37 million Rural and Island Housing Fund, which was recently extended to 2028 and is open to organisations to provide low-cost home ownership or homes for social rent.
It said the scheme will “complement” existing support for the delivery of rural and island homes through the Affordable Housing Supply Programme.
Meanwhile the government has also highlighted how Hjaltland Housing Association has benefitted recently from its Social Housing Net Zero Heat Fund.
The housing association received just under £170,000 to support the second phase of a previous project to retrofit five properties in Virkie.
These are described detached, “hard-to-treat” timber kit bungalows built circa 1976.
All properties will receive energy efficiency measures including external wall insulation, underfloor insulation, external door and ventilation upgrades in a fabric first approach.
A spokesperson for Hjaltland Housing Association said the local organisation was “delighted” to receive the funding.
“The funding supported energy improvement work to five further properties at our Thistle Court scheme in Virkie during 2025/26,” they said.
“The installation of enhanced wall insulation, high spec external doors and mechanical ventilation with heat recovery has significantly improved the energy efficiency of these, all-electric homes, helping to significantly reduce heating costs and improve comfort levels for our tenants.”
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