For nearly three decades, the award-winning organisation (formerly The Highlands Small Communities Housing Trust) has been at the heart of delivering around 500 community-led affordable homes in 100’s of Scotland’s most fragile rural and island communities.

It has worked alongside local people, landowners, community organisations, local authorities and partners to create homes that enable individuals and families to remain in the places they call home, sustaining communities, supporting local economies and helping reverse rural depopulation.

Today, Communities Housing Trust has announced its decision to wind down activities and said it faces the very real prospect of closure due to the financial challenges faced in supporting communities deliver much-needed new affordable housing.

The decision follows a Strategic Review of activities in 2024, and despite a proven track record of successfully delivering innovative affordable housing projects across the Highlands, Islands and rural Scotland, the organisation can no longer sustain operations in a challenging operating environment.

The impact of the potential loss of Communities Housing Trust may extend far beyond the organisation itself as it would represent the loss of decades of specialist knowledge, trusted relationships and practical expertise that cannot easily be replaced. Without dedicated support, many rural and island communities will struggle to develop affordable homes, threatening the sustainability of local schools, healthcare services, businesses and community life.

Blair Allan, chair of Communities Housing Trust, said: “Communities Housing Trust has been at the forefront of shaping and leading the delivery of community-led housing solutions for rural communities in the Highlands and Islands for more than a quarter of a century. For a long time, we have been the go-to organisation for communities looking to address depopulation in remote areas through the development and retention of new affordable housing for local people.

“The Trustees deeply regret having to make the decision to wind down the activities of Community Housing Trust. For a number of years, the Trust has been using its reserves to support the delivery of community led housing whilst striving to identify, what has proved to be an elusive sustainable business model in a challenging operating environment.

“The Trustees have had no choice but to take a decision to begin a managed withdrawal from all activities and to work to minimise the impact on all stakeholders, including staff, tenants and communities which will hopefully protect the legacy of the Trust.

“I would like to acknowledge the long-term support given by the Scottish Government, Nationwide Foundation and The Highland Council and the more recent support from Argyll and Bute, Moray and Perth and Kinross Councils. The establishment of More Homes Scotland should now provide an opportunity to provide a long-term commitment and design a system of support for the effective delivery of community-led housing across Scotland.

“Affordable housing is one of the greatest challenges facing rural Scotland. Without organisations such as Communities Housing Trust to help communities identify opportunities, secure funding, navigate complex development processes and deliver housing projects, many initiatives simply will 
not happen. The consequences will be felt through continued population decline, an ageing demographic, reduced economic resilience and fewer opportunities for young people and families to remain or return to their communities.

“Communities Housing Trust has consistently demonstrated that locally led housing solutions can transform communities, unlocking development that may otherwise not take place and creating lasting social and economic benefits. The threat of closure places this vital work and the future of many rural and island communities at very serious risk.

“Sustained investment in specialist rural housing organisations is not simply an investment in homes; it is an investment in the long-term resilience, prosperity and future of Scotland’s rural and island communities.”