Details of the Rural Affordable Homes for Key Workers Fund: FOI release

Information requested

You asked for details of the £25 million key worker housing fund: the number of housing units approved, total approvals by region, and any unallocated or returned amounts for 2024–25.

Response

The five year Rural Affordable Homes for Key Workers Fund was announced in April 2023 with up to £25 million being made available to enable local authorities and registered social landlords to acquire or lease properties which can be used to provide homes to meet the needs of key workers in their communities.

As of the end of August 2025, 29 homes have been approved through the demand-led Rural Affordable Homes for Key Workers Fund. In addition, Scottish Government officials are actively engaging with local authority partners on potential projects totalling more than 40 homes.

The 29 approved homes are in the following local authority areas:

• Orkney Islands: 8 homes
• Moray: 4 homes
• Highlands: 9 homes
• North Ayrshire: 2 homes
• Na h-Eileanan Siar (Western Isles): 6 homes

The fund is demand-led, and the level of uptake is dependent on local authorities identifying and proposing suitable projects. A total of £4.33 million has been allocated to date.

In 2024-25 we set aside an initial allocation of £5 million, recognising that the fund was demand led. Actual spend against this budget was £2.588 million with the remaining allocation spent within the wider Affordable Housing Supply Programme. Scottish Government grant is drawn down on receipt of evidenced payment claims and at that point is recorded as actual spend. There were therefore no returned monies.

The Scottish Government continues to engage with local authorities to encourage further applications and ensure the fund is utilised effectively to help meet local housing needs for key workers.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.