Economic condition of crofting: 2019 to 2022

This is a report to the Scottish Parliament as outlined in the terms of section 51 of the Crofting Reform (Scotland) Act 2010, reflecting the economic condition of crofting and the measures taken by the Scottish Ministers, the Crofting Commission and others to support crofting during 2019 to 2022.

18. Self-Build Loan Fund

18.1. Self-build is a traditional form of housing supply in many parts of rural mainland Scotland and the islands, and is at times the only form of housing supply.

18.2. Following a successful pilot, the Self-Build Loan Fund (Fund) was launched nationally in September 2018. Initially, the £4 million Fund was to run for three years, ending in August 2021, but was continued to 31 August 2022 with an additional £2 million in funding to mitigate the impacts of COVID-19 on borrowers. To date[25], the Fund has delivered 41 loans with a value of £6.2 million over 13 local authority areas.

18.3. The Fund is not intended to replace market lending and provides short-term bridging loans of up to £175,000 to borrowers who have exhausted all other funding options available, and are unable to access self-build finance. The Fund can also be used in conjunction with the Croft House Grant scheme.

18.4. The focus of the Fund is on supporting projects with the necessary consents in place to allow work to commence quickly, delivering new homes, adding to housing supply, reducing pressure on existing housing stock, and delivering good quality energy efficient homes particularly, but not exclusively, in rural and island areas.

18.5. The Fund relaunched on 21 November 2022, and is anticipated to run for a five-year period, up to August 2027.



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