draft report - Scottish Crofting Federation

Characteristics of RHOGs, the CHGS and Homestake (from RHOG Evaluation Satsangi 2006) 48
Grant RHOG CHGS Homestake
Aim To provide LCHO opportunities
for individuals to provide new
housing in crofting and
agricultural areas. To help
individuals with the costs of
providing serviced sites for
self-build.
To improve and maintain the
standards of crofter housing
with the aim of attracting and
retaining people in the more
remote areas of the Highlands
and Islands.
Availability
Useable in rural areas: i.e.,
local authority areas with a
population density of 2.1
persons per hectare or less
adjusted to exclude
settlements with 10,000 people
or more and to include
parishes meeting density
criterion within urban council
boundaries.
Eligibility All households with at least 1
person in employment, but
land must be decrofted.
Means-tested.
Maxi
Amount
Paid
Public
Security
Normally no more than 33% of
approved total cost, but can
rise to 60%.
Grant must be repaid if house
sold within 10 years of being
given.
Table 7: Characteristics of RHOGs, the CHGS and Homestake
Crofting counties: Invernessshire,
Ross and Cromarty,
Argyll- shire, Sutherland,
Caithness, Orkney and
Shetland.
Crofting tenant, croft owner
who has bought within past 7
years, cottar or Kyles crofter.
Not means tested.
£22,000 for new building or up
to 40% of costs of rehabilitation
(maximum £22,000).
Grant must be repaid with
interest if house sold within 15
years of being given.
To help people on low incomes
who wish to be home owners but
cannot afford to pay the full price
for a house.
National
All households with at least
1 person in employment, but
land must be decrofted. Meanstested.
Normally 40% of total cost
through housing association
development.
If house sold, publicly funded
percentage of initial cost is
applied to sale to be repaid to
HA.
The table above highlights the main characteristics of the three main grants available to deliver low cost
home ownership in the crofting counties.
Land Assembly for Rural Home Ownership Grant Development
As highlighted above the strength of the housing market in rural areas has seen house plots increase to
beyond what is affordable to those on low to middle incomes when the costs of building in remote locations
are added. Rural Home Ownership Grants are normally below 33% of costs and as such increases in plot
prices and tender prices for new housing have meant that RHOGs are becoming unviable for those on low
incomes. In order to increase the availability of low cost land for housing and facilitate RHOG and housing
association development in Highland area, the Highland Small Communities Housing Trust was
developed.
The Trust buys land from landowners in areas where their housing needs surveys supported by community
councils, have shown there is a need for affordable housing development. The land is then sold either to a
local housing association to build affordable rented housing and/or as serviced plots, at a discounted price,
to applicants for RHOGs to build their own homes.
The plots are targeted at people who have a local connection and are eligible to receive a Rural Home
Ownership Grant.
At the time of writing the Trust had the following land available
Houses on Crofting Land Rural Housing Service 2007
38