Housing projects backed by Regeneration Capital Grant Fund
Deputy first minister Kate Forbes
The creation of affordable homes in remote areas of the Highlands and Islands is part of a new range of initiatives to benefit from funding set out in the 2026-27 Scottish Budget.
Deputy first minister Kate Forbes outlined 32 projects across Scotland which will benefit from the latest round of the £36 million Regeneration Capital Grant Fund. The proposals are expected to support more than 1,200 new jobs and 800 training opportunities as well as bringing 21 disused or derelict sites back into use.
Housing-related projects to receive funding include Achagarry: homes for Coigach (£575,920), sustainable living in Applecross (£552,000), and Aberfeldy Affordable Housing (£300,000).
The initiatives include funding to transform Granton Lighthouse into a hub for musicians, artists and creative businesses, with studios and offices as well as exhibition space and a café open to the public.
Other projects include:
- starting works on an advanced manufacturing park for maritime technologies on the River Clyde
- expanding watersports businesses in Tarbert and Campbeltown
- extending Harris’s only visitor centre to include retail and events space and student accommodation
Ms Forbes said: “This investment will make a real difference to people’s lives – providing affordable homes, economic opportunities and community spaces the length and breadth of Scotland.
“Creating hundreds of jobs and training opportunities will boost family incomes and give children a better start in life.
“Granton Lighthouse is a beacon for its community’s future. Once derelict, it will become a vibrant creative hub as part of our commitment to support plans to regenerate Granton Waterfront into a thriving coastal community.”
Granton Lighthouse will be operated by Out of the Blue Arts and Education Trust after its restoration. Rob Hoon, Chief Executive of the trust, said:
“Out of the Blue is delighted that the Scottish Government has granted regeneration funding for the refurbishment of Granton Lighthouse.
“We have been an integral part of the team planning the refurbishment of Granton Lighthouse. The Lighthouse is a significant landmark listed building loved by local people, who see an exciting opportunity for involvement in a new creative space, with opportunities for learning, a cafe, studios, music practice and recording.”


