The Scottish Government

This item was published during the term of a previous administration that ended in April 2007

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Funding for crofters' homes

04/05/2005

Deputy Rural Development Minister Lewis Macdonald today announced the priority areas for the new Croft House Grant Scheme and awards of £2 million to crofters with existing applications.

This will allow more than 100 crofters to build new houses or improve existing croft houses with their share of funding from the new scheme which targets money to where it is needed most by providing different levels of grant in different priority areas.

The high priority areas for the new scheme, as advised by a panel of experts, include most of the Western Isles, and all the past and present areas covered by the Initiative at the Edge. Other areas include:

• Islands off mainland Orkney and Shetland;
• Shetland west mainland;
• South East Caithness;
• North Sutherland;
• The Applecross, Glenelg and Arnisdale and Ardnamurchan Peninsulas and Ross of Mull;
• Inner Hebridean Islands such as Eigg, Coll, Tiree, Colonsay and Jura.

Mr Macdonald said:

"The crofting way of life is crucial to the long term sustainability of Scotland's most remote areas.

"That is why we are changing the nature of crofting support to make sure it provides the assistance crofters need.

"Most of the funding I have announced today will go into the high priority areas, many of which are remote and fragile communities facing population and economic challenges.

"This money and future funding from the scheme, along with the measures in our Draft Crofting Reform Bill, can help ensure the future of crofting."

The low priority areas include:

• Areas to the East of the Great Glen, mainland Argyll and the Inverness area;
• Some areas of Easter Ross, including the Black Isle;
• Mainland Orkney.

That scheme has an overall annual budget of £3.4m which will provide assistance to around 175 crofting households.

All other areas (including Stornoway) are standard priority, a map is available showing the areas.

The Croft House Grant Scheme, which opened to application on January 1, 2005, provides grants for new build and the rebuilding and renovation of existing croft houses. The scheme budget is £3.4m per annum. Only crofters and cottars with a genuine housing need are eligible. The scheme is geographically targeted with three levels of grant determined by priority areas with the highest grant maxima available in the more remote and fragile communities.

The grant rates for a new house are:

Geographic Priority Area :

High - £22,000

Standard - £17,000

Low - £11,500

The new Rebuilding and Improvement Grant provides assistance levels similar to those for new housing and with similar geographic targeting. The rates for these grants are: -

Geographic Priority Area :

High - 40 per cent of costs up to a maximum grant of £22,000

Standard - 30 per cent of costs up to a maximum grant of £17,000

Low - 20 per cent of costs up to a maximum grant of £11,500

Rebuilding and Improvement Grants are subject to a minimum project cost threshold of £10,000.

A Geographic Targeting Panel was set up to advise on the areas appropriate to the 3 levels of grant. The panel members were-

• Mairi Ross, Communities Scotland
• Nicholas Gubbins, HIE
• Di Alexander, Highland Small Communities Housing Trust (HSCHT)
• Dr Maggie Bochel, Highland Council
• Norman MacDonald, councillor, Western Isles Council

The panel considered factors such as the fragility of the communities, depopulation, remoteness, building costs and planning factors, but agreed that the overriding factor was population decline given that the aim of the scheme is to help retain the population in these remote and economically fragile areas.

Ministers will review the priority area after two years of operation.

Crofters whose applications have been approved, can expect a letter from SEERAD in the next two weeks stating the amount of grant appropriate to them. A table showing the spread of eligible applications received in the first three months is available from the Scottish Executive.

The scheme is discretionary and is open to applications on a continuous basis, with grant approved as soon as applications have been processed. Details of awards cannot be published as they relate to individual crofters and their homes.