The Economy and Infrastructure Committee agreed the Dumfries and Galloway Housing Regeneration Fund at its meeting on 24 March, which will help address the housing emergency and support sustainable community development.

The fund brings together targeted programmes to unlock stalled developments, support town centres, tackle empty homes and improve below tolerable standard (BTS) properties. It aligns with the council’s Housing Emergency Action Plan 2025–27, Empty Homes Plan 2026–31 and Local Housing Strategy 2025–30, as well as the nationally recognised Town Centre Living Fund.

Financed through Council Tax on second homes, the fund will help target investment where it is needed most. It responds to pressure on housing supply, the high proportion of older homes needing upgrades, and the challenges facing rural and town-centre communities.

Councillors agreed to:

• Allocate £900,000 to establish the Dumfries and Galloway Housing Regeneration Fund for 2026/27.
• Allocate £300,000 to support town-centre housing developments, enabling high-quality, affordable projects across priority settlements.
• Allocate £300,000 in grant assistance for owners of empty homes, helping bring long-term vacant properties back into use as affordable housing.
• Allocate £300,000 in grants to tackle below tolerable standard properties, improving living conditions for households across the region.
• Allocate £300,000 from the Town Centre Living Fund to support the community-led redevelopment of the Former Woodside Garage in Gatehouse of Fleet.

The programme is expected to deliver tangible benefits for communities across Dumfries and Galloway. Working with housing associations, community organisations and private developers, the council will help create more affordable homes and bring more properties back into use.

The investment will also support town-centre regeneration, transforming underused buildings into modern, energy-efficient homes that increase footfall and support local businesses. Grants to tackle below tolerable standard properties will help deliver safer, warmer and better-quality homes for households who need support.

Together, the measures aim to strengthen communities, support local services and improve the long-term sustainability of towns, villages and rural areas. The council is also enabling the delivery of homes for key workers, helping re-populate places by working with communities. 

Cllr Andy Ferguson, chair of the Economy and Infrastructure Committee, said: “These recommendations will strengthen oversight and support effective delivery of our housing priorities across Dumfries and Galloway. By aligning these funds with our strategic commitments, we can invest more intelligently and more sustainably.

“Most importantly, this work will deliver real benefits for local residents – improving homes, supporting town centres and helping communities thrive.”

Cllr Tony Berretti, vice-chair of the Economy and Infrastructure Committee, said: “This is a practical and forward-looking package that addresses the challenges our region faces, from empty homes to rural housing pressures. The new fund allows us to step in where support is needed most.”

“These decisions will help create better places to live, support community‑led development and bring long‑term improvements for households across Dumfries and Galloway.”

Officers will now implement the new fund, finalise grant criteria for each programme, and progress the delivery of approved projects – including the Gatehouse of Fleet redevelopment.

Rural depopulation research

The council has also agreed the next steps to address rural depopulation following a debate at Full Council on 26 March 2026.

Councillors considered findings from three research reports on depopulation, published last month and funded by the Scottish Government.

The studies examine population change across the region and identify practical actions to help communities grow and thrive.

The research was delivered by the council in partnership with the University of the West of Scotland and Community Development Lens (CoDEL).

The reports explore housing, feedback from community engagement and real examples of actions that have already worked in other rural areas in Scotland, the UK and overseas.

They highlight six connected factors that influence population change: housing, employment, education, transport, health and social connections.

Full Council noted the findings and agreed to embed the learning into future council activity and partnership working.

This includes shaping policy, informing investment decisions, mapping assets across the region to identify opportunities for action, and working with national, regional and local partners.

The work will also support ongoing initiatives to attract and retain people in rural communities, promoting the region as a positive place to live, work and invest.

A council spokesperson said: “Rural depopulation affects many parts of Scotland, and there are no quick or simple solutions. These reports give us a strong evidence base rooted in the lived experience of our communities.

“They help us understand what makes people stay, leave or move here and what really matters in everyday life. Full Council has agreed that we now take this learning forward and use it to shape how we work with partners.

“Our focus is on practical wide-ranging actions that support sustainable, thriving communities across Dumfries and Galloway.”