A recent Freedom of Information (FOI) request has revealed that over £100 million in funding intended for rural housing developments in Scotland has been diverted to urban areas, prompting strong criticism from the rural business organisation, Scottish Land & Estates (SLE).

Since 2018, £104.8 million specifically allocated for rural affordable housing has been granted to Edinburgh and Aberdeen city councils. This decision has raised concerns within the rural community, as these urban authorities already have access to separate funding streams for urban developments.

Anna Gardiner, Housing Policy Adviser at SLE, expressed deep disappointment at this misallocation of funds. She emphasised the urgent need for a comprehensive review of the Scottish Government's criteria for selecting new housing sites. The current 6-fold classification guidance, she argued, has proven inadequate in distinguishing between urban and rural areas.


SLE is now calling on the Scottish Housing Minister to rectify this issue by returning the misdirected funds to rural communities. This would enable the development of much-needed affordable housing in these areas, addressing the pressing housing crisis faced by rural residents.

SLE Housing Policy Adviser, Anna Gardiner, said: "Scotland's rural communities are being short-changed by the flawed criteria for urban-rural classifications. Not only do they receive a lower proportion of funding in the first place, but the funding they are receiving is now being spent by city local authorities. This is a wholly unacceptable revelation that must be addressed urgently.

"At SLE, we have often made the case that rural Scotland is treated unfairly, with little understanding of the challenges facing our communities. Regardless of our contention that rural issues are poorly understood by some aspects of government, surely even they would agree that classifying Gilmerton in Edinburgh, or Dyce in Aberdeen as 'rural' is a step too far.

"The Scottish Government must take steps to return this funding to the rural communities it belongs to, and robustly interrogate the mechanisms that allowed this rural funding to be funnelled into the cities.

"We know that housing shortages are a key driver or rural depopulation, and any measures to help deliver new affordable homes in areas hit by this issue can make a huge difference. It is concerning that those communities struggling to remain sustainable because of a lack of homes, also have difficulty accessing funding ringfenced for rural housing, whilst it is apparent that those very funds are being capitalised on in what are undoubtedly large urban areas."