Funding cap raised to help self-build projects in Highlands

A fund providing support to people who want to build their own home in the Highlands has increased the level of loans it offers.

The Scottish Government’s £4million Highland Self-Build Loan Fund is now making loans of up to £175,000 available.

The previous upper limit of support from the fund, which is available to people in the Highland Council area, was £150,000 and the increase was made after it was found that was too restrictive.

Launched in April, the pilot scheme aims to rejuvenate what was once the main housing delivery model in the Highlands and generate growth in the “self-build” sector. It is being administered by the Inverness-based Highlands Small Communities Housing Trust (HSCHT).

Announcing the changes, Housing Minister Kevin Stewart said: “This £4million Self-Build loan fund is an important opportunity to address the lending difficulties experienced by households looking to build their own homes, and explore how we can increase housing supply while allowing customers to input into the design.

“We have taken on board feedback that the £150,000 cap is too restrictive, which is why we are now increasing this cap and making loans of up to £175,000 available for people to build homes that can better suit their needs. We will continue to monitor and review the pilot over its two year lifespan.” The fund is already providing loans which are allowing development to take place across the Highlands, including in smaller rural communities, where new-build housing is scarce. HSCHT chief executive Ronnie MacRae said: “We are delighted to see in the upper limit increased for applications to £175,000. The Scottish Government’s Highland Self Build Loan Fund now has the potential to assist many more Highland households to build their own homes, and provide the added social and economic benefits at the same time.

“We welcome this flexible and responsive approach and the many other new initiatives being provided by the Scottish Government. It is an exciting time for housing options in Scotland.”