Swinney: Housing scheme to help Scots ‘put down roots’ in rural and island areas

The Scottish Government has announced plans for a housing grant scheme in rural areas.

First Minister John Swinney set out the Rural and Island Housing Grant Scheme at the National Farmers Union Scotland conference on Friday.

He said the scheme, which will have an indicative budget of up to £20 million over four years, will help ensure people can “put down roots in rural and island Scotland, or move back to the communities where they grew up”.

He added: “It will build on our positive track record in affordable housing – with 10% 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 scheme will help with costs in rural and island communities and aims to enable people, including first-time buyers and families, to own affordable homes.

It 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.

Mr Swinney continued: “It is also important for the sustainability and growth of our agricultural businesses, and for our rural and island economies.

“It will complement other measures intended to demonstrate, through the most generous direct investment in the UK, our commitment to working in partnership with Scotland’s farmers, crofters and land managers to deliver the support they need to meet the opportunities and challenges that lie ahead.”

Mr Swinney also confirmed a package of agricultural support, including £14.25 million to deliver a second round of the Future Farm Investment Scheme.

The Government said this will triple capital funding for small producers to £1.5 million, and £1 million for the Sea Eagle Management Scheme. In total, the draft Budget will provide £660 million in support for the sector.