Announced in April 2023, the £25 million fund is designed to allow councils and social landlords to acquire existing homes which can be used for workers in key areas such as emergency services.

But a response to a parliamentary question from the Scottish Tories found less than 20 homes had been approved in the five-year project.

Seven homes have been identified in both Highland and Orkney with two homes identified in Moray and a single one in North Ayrshire.

Shadow rural affairs secretary Tim Eagle says this is typical of the SNP’s “failure to focus on rural Scotland” and always “overpromising and then underdelivering.”

He added that the lack of homes in rural Scotland is “deeply damaging” for the local economy in those areas and called on SNP ministers to “urgently explain” why so few homes have been delivered since the fund was launched.

Scottish Conservative shadow rural affairs secretary Tim Eagle MSP said: “The SNP are continuing to scandalously neglect the housing needs of rural Scotland.

“They announced this scheme to much fanfare but progress on delivering homes has been painfully slow. For only 17 homes to be identified through a scheme worth £25 million beggars belief.

“It is yet another example of the SNP’s failure to focus on rural Scotland. Even when they try to, they overpromise and spectacularly underdeliver.

“Failing to deliver the homes rural Scotland needs is also deeply damaging for the local economy. It puts off people coming to live and work here.

“SNP ministers need to urgently explain why so few homes have been delivered through this fund that was launched over 18 months ago.”

Housing minister Paul McLennan said the initiative is “demand-led” and that officials are discussing more homes.

Mr McLennan said: “We recognise that good quality, affordable housing is essential to help attract and retain people in rural and island communities and the 2025-26 draft budget allocation of £768m for affordable housing will help support the delivery of 110,000 affordable homes by 2032.

“At least 10% of these will be in rural and island areas backed by our Rural and Islands Housing Action Plan.

“Through the Affordable Housing Supply Programme, the Scottish Government has delivered over 10,000 affordable homes in rural areas including over 1,100 in island communities between April 2016 and March 2023.

“Demand-led funds such as the rural and islands housing fund and rural affordable homes for key workers fund are also a key part of our approach to addressing specific rural and island housing issues with up to £25m available to local authorities and registered social landlords over a five-year period to purchase housing for key workers where required.”