Scotland earmarks £20m for new rural and island homes grant scheme

Mr Swinney said the new scheme will also support the development of the recently announced national housing agency, which has rural and island housing as one of its four priorities.

The SNP administration is aiming to deliver 3,600 social and affordable homes in these areas by 2030 as part of a slate of targets announced last year.

In a statement last week, Mr Swinney said: “We want 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.”

He added: “It is also important for the sustainability and growth of our agricultural businesses, and for our rural and island economies.”

The news comes as the administration seeks to revive social housebuilding levels after new starts reached record low levels last year.

In its Budget last month, the SNP announced it would be investing a record £4.1bn of public cash in its Affordable Housing Supply Programme over the next four years, though groups in the housing sector warned this would not be nearly enough to help meet the country’s housing need.

Màiri McAllan, the housing secretary, confirmed to Inside Housing in September that the party is targeting 25,200 social rent homes by 2030.

The difficulties of building homes in remote parts of Scotland were flagged last November by a campaign group as it called for a rural exemption to the impending building safety levy.

Housing shortages in rural and island areas were also highlighted by a salmon farming business last summer as it lodged applications to build dozens of temporary accommodation units for its workers.

But there has also been some positive news on this front, as last autumn Places for People launched a partnership with Orkney Islands Council, which will see the duo aim to build 500 affordable homes on the islands over the next decade.