The Housing Crisis in the Highlands and Islands of Scotland: A Looming Threat of Depopulation

The picturesque landscapes of the Highlands and Islands of Scotland, with their rugged mountains and serene lochs, have long been a beacon for tourists and retirees alike. However, beneath the surface of this idyllic setting lies a pressing issue that threatens the very fabric of rural communities: a severe lack of available and affordable housing. This crisis is not just a matter of real estate; it is a driving force behind fears of depopulation in these rural areas, as local MPs and community leaders warn that without the younger generation, local services and economies are at risk of collapse.

A National Housing Emergency

In May 2024, the Scottish Government declared a national housing emergency during a Labour-led debate at Holyrood, a move that underscores the urgency of the situation. This declaration followed a report from the Highland Council, which revealed that population growth in the Highlands between 2011 and 2022 was a mere 1.4 percent—less than half the rate of Scotland as a whole. Alarmingly, the Western Isles are projected to experience a six percent decline in population by 2028.

Inverness, the capital and largest city of the Highlands and Islands, is emblematic of this crisis. With a population nearing 50,000, the city had only seven properties available for rent on Rightmove at the time of writing, with the cheapest starting at £650 per month. Such statistics paint a stark picture of the housing landscape, where demand far outstrips supply.

An Ageing Population and Its Implications

The demographic shift in the Highlands is also concerning. The number of residents aged over 75 has surged by 60 percent, indicating that the area is increasingly seen as a desirable retirement destination. While this trend may seem positive at first glance, it raises significant concerns about the sustainability of local communities. As older generations settle in, the younger population is either unable to find housing or is being driven away by soaring prices, leading to a potential demographic imbalance that could jeopardize the future of these rural areas.

Voices from the Ground

Local politicians are sounding the alarm. Rhoda Grant, a Scottish Labour MSP for the Highlands and Islands, stated, "Lack of housing is a central reason leading to the threat of Highland depopulation." She criticized the SNP government for failing to take decisive action, arguing that the recently published depopulation action plan lacks innovative solutions. Similarly, Tim Eagle, a Scottish Conservative MSP, emphasized the need for focused action to prioritize housing for younger working individuals, warning that without them, communities would "simply die."

The housing crisis is intricately linked to economic challenges as well. Grant highlighted that approximately 3,000 job positions in the Highlands are at risk due to housing shortages. Businesses are struggling to fill vacancies because potential employees cannot find suitable accommodation. This vicious cycle threatens not only individual livelihoods but also the economic vitality of entire communities.

The Business Perspective

The impact of the housing crisis extends beyond individual residents to the business sector. Tavish Scott, chief executive of Salmon Scotland, which employs thousands across the country, described the "escalating crisis" of finding homes for workers. He argued that the millions paid by salmon companies to the Scottish Government should be redirected to build affordable housing for local workers, ensuring that the economic benefits of Scotland’s largest food export are felt in the communities where they operate.

Government Response and Future Plans

In response to the crisis, Maree Todd, MSP for Caithness, Sutherland, and Ross, defended the Scottish Government’s efforts, citing various interventions aimed at addressing housing challenges in rural communities. These include legislation on short-term lets and increased council tax on second homes. Todd emphasized the government’s commitment to increasing affordable housing stock, with a target of delivering 110,000 affordable homes across Scotland by 2032, including at least 10 percent in remote and rural areas.

Personal Stories: The Struggle for Housing

The plight of young people in the Highlands is poignantly illustrated by the story of Sarah Yoxon, a 33-year-old resident of the Isle of Skye. After years of searching for a home, Sarah and her husband faced numerous challenges, from a lack of available properties to the high costs of homes in need of renovation. Their experience is emblematic of the struggles many young locals face in securing housing, even when they are financially capable.

Sarah recounted how they initially sought to buy a shared equity house but were deemed ineligible due to their savings. After years of searching, they finally found a home when a seller prioritized local buyers over higher offers. This act of kindness was a rare exception in a market that often favors outside investors and holiday let operators.

The Root Causes of the Housing Shortage

Several factors contribute to the housing crisis in the Highlands and Islands. The proliferation of Airbnbs and second homes has exacerbated the situation, with many properties being converted into holiday rentals rather than serving as residences for local families. Sarah noted that many homes are in poor condition and require significant investment to make them livable, deterring potential buyers.

Moreover, existing affordable housing schemes often do not cater to the needs of young locals. Sarah pointed out that while new affordable homes have been built on Skye, they remain unsold due to stringent eligibility criteria. She suggested that adapting these criteria could help more locals access affordable housing.

Conclusion: A Call for Action

The housing crisis in the Highlands and Islands of Scotland is a multifaceted issue that requires urgent attention and action. As local communities grapple with the threat of depopulation, it is imperative that both the government and private sector collaborate to create sustainable housing solutions. The stories of individuals like Sarah Yoxon highlight the human impact of this crisis, underscoring the need for policies that prioritize the needs of local residents. Without decisive action, the unique character and vibrancy of the Highlands and Islands may be lost, leaving behind only echoes of a once-thriving rural landscape.