Rural housing providers in Scotland face unique and complex challenges that set them apart from urban areas. From meeting net-zero targets to grappling with geographical isolation, financial constraints, and evolving tenant needs, these providers must navigate a range of hurdles to deliver quality, affordable housing. This article explores the key challenges facing rural housing providers in Scotland today.

Meeting net-zero emissions targets

Achieving net-zero emissions is a top priority for Scotland, but it poses significant challenges for rural housing providers. The Scottish Government’s commitment to decarbonising social housing is seen as a staple in Scotland’s efforts to ending climate change emissions, yet implementing the necessary changes is particularly difficult in rural areas.

• High retrofit costs: Many rural homes are older, often with stone walls and traditional construction, making them harder and more expensive to retrofit with energy-efficient technology. The cost of installing energy-saving measures, such as air source heat pumps and improved insulation, can be prohibitively high. For instance, Changeworks recently supported Hjaltland Housing Association in a deep retrofit project which shone a light on the complexities and expenses involved in upgrading older rural homes. Different energy efficiency retrofits were given to five properties, and despite a clear positive impact on energy demand reduction, none of the properties achieved the current statutory (EESSH2) standards.
• Access to skilled labour and materials: Rural areas frequently lack access to skilled contractors and essential materials needed for retrofitting. This can lead to delays, increased costs, and reduced options for housing providers striving to improve energy efficiency.
• Funding gaps: Securing sufficient funding to meet net-zero goals is a significant issue. While grants and government support are available, they often fall short of covering the substantial costs associated with decarbonising rural housing. Therefore, rural providers face a funding shortfall that limits their ability to make necessary improvements.

Maintaining housing stock

The geographical location of rural Scotland adds layers of difficulty for housing providers, particularly in terms of maintenance and repairs. Remote properties often take substantial travel time to reach, in turn, increasing costs and making it more difficult to address issues quickly. The scarcity of local tradespeople further complicates matters, as housing providers may have to source contractors from urban areas, leading to inflated costs and significant delays. A new report commissioned by Argyll and Bute Citizens Advice, with support from the UK Collaborative Centre for Housing Evidence (CaCHE), identified this as a major barrier to rural housing provision and found that rural landlords are forced to spend more on basic repairs, often leaving tenants in “questionable conditions”. These logistical barriers not only strain provider resources but also negatively impact tenant satisfaction and wellbeing.

Financial viability and resource constraints

Financial challenges are at the forefront of issues faced by rural housing providers in Scotland. Higher costs and limited financial resources create a precarious operating environment.

• High costs and lower revenue: The costs associated with the building, maintaining, and managing of housing in rural areas are higher than in urban settings. With fewer tenants and generally lower rental incomes, the financial model for rural housing can be unsustainable.
• Dependency on grant funding: Many rural housing providers rely heavily on grant funding, which is often inconsistent and can be difficult to secure. This dependency, particularly during such an economically turbulent time across the country, creates uncertainty, making long-term planning and investment in new projects or significant refurbishments a challenging endeavour.

Adapting to changing tenant needs

Scottish rural housing providers also need to respond to the evolving needs of their tenants, especially as demographic shifts and technological changes redefine housing requirements.

• An ageing population: Scotland’s rural areas have a higher proportion of elderly residents compared to urban areas. Housing providers need to invest in adaptations such as accessible bathrooms and mobility aids, which can be costly and difficult to implement in older properties.
• Demand for digital connectivity: The growing need for reliable digital connectivity, spurred by the rise in remote working, is a critical issue in rural areas where broadband access is often poor. Lack of digital infrastructure hampers tenants’ daily lives and restricts housing providers’ ability to use digital solutions for property management and tenant engagement.

Conclusion

Rural housing providers in Scotland face a complex landscape of challenges that require tailored solutions. What works in an urban setting will not always translate to the rural landscape. Addressing these issues will necessitate greater collaboration between government bodies, housing associations, and local communities, as well as targeted funding and policy support. Only by overcoming these barriers can rural Scotland move towards a sustainable, low-carbon future that meets the needs of its diverse and dispersed populations.

This topic, and others, will be discussed in more detail at Harper Macleod’s National Housing Conference which takes place 16th to 19th September.

• Euan Bathgate is a senior solicitor in the Public Sector Real Estate, RSLs and Infrastructure team at law firm Harper Macleod