Rural and islands housing: action plan

Executive Summary

Equality, opportunity, and community are the three overarching defining missions of this Government, and the provision of affordable housing in our rural and island communities is a recognised priority within our long-term Housing Strategy, Housing to 2040, Scotland’s National islands Plan and also the National Strategy for Economic Transformation and New Deal for Business.

The place-based and sometimes differentiated challenges faced by rural and island communities have been well articulated in those strategic policy documents and in the extensive consultation and engagement process which, with partnership delivery, is the foundation for this Action Plan. We have heard, and are determined to address, the call for even closer collaboration with local authorities, housing associations and other delivery partners and for a reinvigorated partnership with business.

The plan sets out what we are already doing that must be sustained, what more we will do, and how we will continue to monitor impacts and innovate where new or unmet needs arise, or where opportunity calls.

We will work collaboratively to deliver this Action Plan, monitoring and assessing delivery and impact, reflecting on the changing dynamic across Scotland’s remote, rural and island communities and where appropriate responding to new challenges where they arise.

Working in partnership we will continue to:

• deliver our ambition for 110,000 affordable homes by 2032, 10% of which will be in remote, rural and island communities;
• monitor implementation of the National Planning Framework 4;
• work with local authorities and registered social landlords to deliver the demand-led Rural Affordable Homes for Key Workers Fund with up to £25 million available to 2028;
• work with the Scottish Empty Homes Partnership in bringing more empty homes back into use including identifying new opportunities for collaborative working, and share best practice between empty homes officers working across rural and island areas;
• support community-led affordable housing development, through the continuation of the demand-led Rural and Islands Housing Fund with up to £30 million this Parliament;
• explore the potential and impact of modern methods of construction in rural and island contexts;
• reform and modernise compulsory purchase legislation in Scotland;
• continue to review the Croft House Grant scheme annually to assess its impact and effectiveness;
• promote community awareness of Asset Transfer, and build capacity and uptake by publicising a network of named local advisors and experts; and
• collaboratively review suppliers’ gigabit-capable build to optimise the delivery and impacts of the first Project Gigabit procurement in Scotland, later this year.

We will also:

• support collaborative and place-based approaches to identify land for affordable housing, including a focus on public sector assets, and land reform rooted in community empowerment;
• jointly fund, with Nationwide Foundation, capacity within the Communities Housing Trust and South of Scotland Community Housing to support affordable housing delivery;
• consult on changes to building standards which would require developers to deploy and optimise digital connectivity in all new housing developments;
• give local authorities new powers to apply higher council tax rates for second homes from April 2024;
• work with local authorities to monitor the designation of short-term let control areas;
• commission independent research to support a review of affordable home ownership in rural and island areas;
• extend use of rural housing burdens in the delivery of affordable housing;
• consider the case for Compulsory Sales Orders;
• apply New Deal for Business principles to better support partnership working which supports rural and island economies, business growth, and community wealth building, in particular through:
  • closer connections with housing sub-groups of Regional Economic Partnerships, delivering systematic consideration of future economic growth opportunities, housing delivery, construction and skills capacity and the broader role of the private sector; and
  • work to address challenges with construction supply chains, skills and capacity.

And future innovation will emerge from:

• continued local collaboration between Scottish Government area-based teams, local authorities, registered social landlords and other key partners and stakeholders including sharing of knowledge and best practice; and
• regular partner and community engagement, and an annual summit chaired by the Minister for Housing to assess progress, impact and the changing dynamic across Scotland’s rural and island communities.

These summary actions are described in more detail in the body of the Action Plan.