Highland housing trust faces closure amid financial challenges

A housing charity which has helped hundreds of people to secure affordable housing in rural and island communities says is it at risk of closure.

The Inverness-based Communities Housing Trust said it had started winding down its activities due to financial challenges.

It has warned that this could result in the loss of decades of "specialist knowledge and practical expertise", which could make delivering affordable housing projects even more difficult.

The Scottish government said it was actively considering future arrangements and potential support.

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The trust, formerly known as the Highlands Small Communities Housing Trust, said that its work over the last three decades had let to about 500 affordable homes being built.

The organisation said this had helped sustain communities in some of Scotland most fragile rural and island areas, allowing people to remain in the places they call home.

A three year funding arrangement with the Scottish government and Nationwide Foundation ended in June and the trust said it could not keep using its financial reserves.

They said it had also been facing challenges from increasing construction and transport costs.

'Complex development processes'

Its chairman Blair Allan said the trustees deeply regretted having to make the decision to wind down activities.

He said they were working to minimise the impact on staff, tenants and communities to protect the legacy of the trust.

He said: "For a number of years, the trust has been using its reserves to support the delivery of community-led housing whilst striving to identify, what has proved to be an elusive sustainable business model in a challenging operating environment."

"Affordable housing is one of the greatest challenges facing rural Scotland. Without organisations such as Communities Housing Trust to help communities identify opportunities, secure funding, navigate complex development processes and deliver housing projects, many initiatives simply will not happen."

He added: "Sustained investment in specialist rural housing organisations is not simply an investment in homes; it is an investment in the long-term resilience, prosperity and future of Scotland's rural and island communities".

Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville said that the Communities Housing Trust had made a significant contribution to rural and island housing over many years.

She said "Decisions regarding the future of the organisation are matters for its board and trustees. We recognise that this will be an uncertain and concerning time for tenants, staff and communities connected to the trust, and the Scottish government is actively considering future arrangements and potential support."