The Scottish Government is committed to introducing a new Land Reform Bill to Parliament by the end of 2023. Key proposals for the forthcoming Bill, contained in a recent consultation paper titled ‘Land Reform in a Net Zero Nation’, focus on imposing statutory requirements on large-scale rural landholdings, partly defined by Government as landholdings exceeding a minimum threshold of 3,000 hectares.

The Government proposes that such landholdings be subject to a public interest if they are to be transferred into new ownership by sale or other means. It also proposes that they should be subject to compulsory Land Management Plans, and a duty to comply with the currently voluntary Land Rights and Responsibilities Statement. The Government further proposes a requirement on the part of owners of such landholdings to provide prior notification of their intention to sell their holdings, to eradicate ‘off-market’ rural land sales that limit opportunities for community ownership.

Lowering the minimum threshold for landholdings from 3,000 hectares to 500 hectares for the above proposals, and considerably lower still for the ‘prior notification of intention to sell’ requirement, would greatly enhance the likelihood of them addressing the lack of affordable housing contributing to the depopulation and demographic crisis facing many economically fragile rural communities.

The new Land Reform Bill could also help tackle the lack of affordable homes in rural communities by amending the Planning (Scotland) Act 2019 to introduce a new-use category in the land-use planning system, as previously proposed by Andy Wightman when the Planning Bill was going through Parliament. That would enable planning authorities to classify homes as primary residences, second homes or holiday lets, with planning permission being required for a change of use.

Community-led housing provision has long been a distinctive feature of community land ownership in rural Scotland, with both the Communities Housing Trust and South of Scotland Community Housing playing crucial roles in facilitating its delivery. The forthcoming Land Reform Bill therefore also needs to amend the suite of existing Community Rights to Buy to ensure they fit for the purpose of bringing more land and assets into community ownership to help provide more of that housing.

There is now an opportunity to take a genuinely joined-up approach to land reform and community-led housing development by including the above measures in the forthcoming Land Reform Bill. All the more so, if they are aligned with rural housing planning policy detailed in the recently published draft National Planning Framework 4 and the future Community Wealth Building Bill that is also on the Government’s legislative radar.

Self-builders who are unable to access standard bank lending can now apply for a loan of up to £175,000 to help with the development costs of their home.

The Self-Build Loan Fund reopens for applications on Monday 21 November and aims to support the delivery of good quality and energy efficient housing, giving people more choice about the homes they want to live in.

Following the success of a pilot scheme in the Highlands the fund was launched nationally in 2018, with loans worth a total of £6.2 million enabling 41 families to build homes from the Borders to Shetland.

Housing Secretary Shona Robison said:

“This fund aims to unlock the dream of building your own home, in many cases allowing people to stay in their local communities. We know it can be more difficult to access finance for self-build projects than for buying an existing property, and this fund is a crucial lifeline for those unable to access standard bank lending. When loans are repaid, the money can be re-used, during the life of the fund, supporting more self-builders and providing more homes for future generations.

“Self-provided housing can play an important role contributing to the long-term sustainability of our rural and island communities, and this £6 million Scottish Government fund will continue to help support this. It has had great success in the Highlands and Islands and has also provided dream homes for people living across the whole of Scotland.

“Wherever you live, if you’re interested in building your own home I’d encourage you to contact the Communities Housing Trust to find out more.”

Kirsten, a school teacher from Shetland who benefitted from the fund, said:

“We acquired our plot of land over 20 years ago. At that point there was an old croft house on the land which we initially planned to renovate. However, several things arose to hinder our plans. The most significant was my partner becoming long-term disabled after an accident. This meant a lot of disruption to our build plans.  

“If the fund hadn’t been available we would have had to stop our build altogether and sell the plot of land. That would have meant it being harder for us to get onto the property ladder. It can be difficult or more costly to find a property that has larger living accommodation needed for wheelchair use. It may also have taken us away from our home area where family are nearby. I don’t know what we would have done without this fund.”

Ronnie MacRae, CEO of the Communities Housing Trust, said:

“In the years we’ve administered the fund, we’ve seen demand rise as conditions become even more challenging for people to build their own home. In many cases, families just need a bit of extra support and are fully able to build and then repay the loan.

“Self-build remains an important option for many, particularly in areas where no other options exist, so we are extremely grateful to the Scottish Government for continuing to provide the fund.”

Background

The fund is reopening on 21 November 2022 after closing on 31 August 2022 to new applications.

The Self-Build Loan Fund is administered on behalf of the Scottish Government by the Communities Housing Trust.

The administration fees borrowers will pay to secure their loan is £895.
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The interest rate for the loan is 5.5% (9% for those in default). The agreed repayment period will depend on the nature of the project, but the loan is intended to be short-term and repaid on completion of the build.