A housing charity has announced its closure due to “significant financial challenges” and a “lack of sufficient funding” in recent years.

Rural Housing Scotland, a charity that describes itself as working to overcome the challenges of providing housing in rural areas, will close at the end of the month after more than 20 years.

The charity, based on the Scottish Isle of Mull, said a lack of core funding had given it “no choice” but to close.

Rural Housing Scotland had an income of £242,284 according to its latest accounts for the financial year ending 31 March 2023.

The charity’s expenditure was £195,425 for the same period. 

It had one member of staff. 

“Despite its success and the growing need for rural housing, the charity has faced significant financial challenges due to a lack of sufficient funding in recent years,” the charity said.

“Without core funding to sustain its operations, Rural Housing Scotland has made the difficult decision to close.”

The charity was founded in 2001 and said it was established with a clear mission - to help rural communities across Scotland address housing needs, alleviate rural homelessness, and improve poor housing conditions.

“Throughout its history, Rural Housing Scotland has worked tirelessly to overcome the unique challenges of providing housing in rural areas,” the charity said.

“The organisation collaborated with communities, policymakers, and partners to tackle the high costs and complexities of rural housing development.

“These grassroots efforts not only informed local projects but also played a crucial role in shaping policies and influencing funding organisations to better address the needs of rural communities.”

Wendy Reid, chair of Rural Housing Scotland, said the challenges facing rural housing have not diminished, despite announcing the charity’s closure with “heavy hearts”.

Reid said: “However, we are proud of the role Rural Housing Scotland has played in shining a light on these critical issues and raising awareness among policymakers and the public."

Rural Housing Scotland extended its “deepest gratitude” to its staff, board supporters, and funders, as well as the many communities and landowners they have partnered with over the years.

“While Rural Housing Scotland will no longer be active, the charity emphasises that the need for affordable housing in rural areas remains urgent,” the charity said.

“Rural Housing Scotland encourages others to continue the work it began, ensuring that Scotland’s rural and island communities remain vibrant with affordable and inspiring homes for all who wish to live there.”