Local Housing Strategy: guidance 2026

Rural and Island Housing

In developing a LHS, local authorities should consider the distinct nature, and characteristics of rural and island areas including any challenges relating to existing supply, housing services and/or the supply of new homes.

The Scottish Government remains committed to supporting the delivery of 110,000 affordable homes by 2032 of which at least will be 10% in rural and island areas. Housing has a key role to play in the quality of life and sustainability of rural communities as well as supporting the local economy.

Rural and Islands Housing Action Plan

In October 2023, the Scottish Government published a Rural and Islands Housing Action Plan. The plan recognises the complexity of delivering more homes in rural and island communities. It highlights that understanding housing supply, market drivers and demand as well as issues of tenure and affordability is key to the delivery of appropriate place-based housing solutions in rural and island areas.

Engagement with Rural and Island Communities

The role of local authorities in supporting and co-ordinating housing delivery across their area is vital. It is important that they actively engage with residents, registered social landlords, businesses and community groups to fully understand rural and island housing requirements and priorities. Local authorities should support communities to bring forward housing proposals in areas of identified need where they choose to do so.

This could include engaging early on feasibility and constraints, bringing together communities and other housing providers around shared delivery priorities as well as prioritising and monitoring progress alongside other affordable housing delivery programmes.

The Rural and Islands Housing Plan recognises that community-led housing plays an essential role in the broader approach to delivering more affordable homes in rural and island areas. The Rural and Islands Housing Fund has been extended to 2028 and forms part of the broader Affordable Housing Supply Programme. It enables local organisations to take an active role in meeting the housing needs of their communities where they choose to do so.

Rural and Islands Housing Fund

The Rural and Islands Housing Fund complements existing investment in affordable housing directed through registered social landlords and local authorities. It can:

• support the delivery of new build houses for affordable rent or sale
• bring privately owned empty homes back into use for affordable rent or sale
• facilitate conversion of commercial and non-domestic properties for residential use, where appropriate

Islands

Local authorities should ensure that the distinct needs and challenges of island communities are fully considered and reflected in a LHS. This includes island authorities such as Shetland Islands Council, Orkney Islands Council, and Comhairle nan Eilean Siar, as well as local authority areas such as Argyll and Bute Council, Highland Council and North Ayrshire Council which have both mainland and island communities.

The Islands (Scotland) Act 2018 introduces measures to support and help meet the unique needs of Scotland's islands now and in the future. It seeks to help create the right environment for sustainable growth and empowered communities. Local authorities with inhabited islands in their area should have regard to the duties in the Island (Scotland) Act 2018. They should consider island communities in relation to a policy, strategy or service that is likely to have an impact on an island community.

The National Islands Plan provides a framework for action to meaningfully improve outcomes for island communities. It includes a range of housing outcomes and local authorities are encouraged to consider these when developing a LHS.

Areas of Linguistic Significance

The Scottish Languages Act passed Stage 3 consideration at the Scottish Parliament on 17 June 2025 and received Royal Assent on 31 July 2025. It gives the Gaelic and Scots languages official status in Scotland and makes changes to support for Gaelic and Scots.

The Act contains a power which enables local authorities to designate an area as an “area of linguistic significance”. An area could be given this status if:

• at least 20% of the area’s population has Gaelic language skills
• it has a historical connection with the use of Gaelic
• if the area provides Gaelic education
• it is in an area in which other significant activity related to Gaelic language or Gaelic culture takes place

Summary of areas expected to be included in LHS

a. where a local authority has rural and island areas, the LHS should include a summary of the distinctive challenges in terms of existing supply and the delivery of new homes. It should include any issues relating to housing related services in rural and island areas. It should set out what specific actions the local authority is taking or plans to take over the lifetime of a LHS to address these challenges and how the local authority is working collaboratively with relevant partners to support delivery. Partners who may have a role in supporting this work could include amongst others Enterprise Agencies, Regional Economic Partnerships, businesses, Forestry and Land Scotland, Scottish Forestry, landowners, rural and island housing enablers, local development trusts and community groups.

b. where local authorities have inhabited islands within their area, a summary setting out the distinct nature, and characteristics of the island area together with key actions that the local authority plans to take to support identified housing outcomes over the period of the LHS. This should include how consultation with island communities has influenced the development of LHS priorities and include a weblink to a copy of the Island Communities Impact Assessment in a LHS.

c. where applicable, where a local authority has an area, or areas, of linguistic significance they should highlight specific engagement with these Gaelic-speaking communities, including a summary of priorities and outcomes for housing and housing related services.

National Parks

Local authorities, as both the statutory housing and planning authority, are responsible for assessing housing requirements, and enabling the delivery of both market and affordable housing through the provision of a ten-year supply of housing land. However, for land contained within a National Park, the National Park Authority is the statutory planning authority and must work closely with relevant local housing authorities to agree housing priorities and support local delivery.

In the development of the LHS, local authorities are expected to engage closely with the relevant National Park Authority to ensure that there is good collaboration and alignment between the LHS and the LDP, including any specific housing plans for the area. This could include collaboration on work to support understanding of local housing needs and demand, existing pressures, future requirements and investment priorities.

Summary of areas expected to be included in LHS

a. where applicable, demonstrate that there has been engagement with the relevant National Park and include a short summary of specific housing priorities and outcomes.