Rent to Buy Scheme

The Highlands Small Communities Housing Trust (HSCHT) created a Rent to Buy scheme to help low-income families in remote parts of the Scottish Highlands find affordable homes. Families rent newly built houses at below-market prices for five years. Part of their rent is saved and used as a deposit to help them buy the home later, with the sale price fixed from the start. This makes it easier for people who can afford mortgage payments but don’t have savings for a deposit.
The scheme is funded by government loans rather than grants and is designed to pay for itself through rent and home sales. The homes stay affordable long-term thanks to a legal rule (the “Rural Housing Burden”) which ensures they can’t be sold on the open market. If a buyer wants to move, HSCHT can buy the home back and offer it to another local family.
The project also supports local jobs and training. It uses small local builders, creates apprenticeships, and works with the University of the Highlands and Islands. So far, it’s delivered over 30 homes across 34 small communities, helping to keep rural areas alive and reduce housing pressure in towns.
Environmentally, the homes are energy-efficient and use local materials, which lowers carbon emissions. They include features like insulation, solar panels, and water-saving fixtures.
The scheme faces some challenges, like finding cheap land and getting mortgage lenders to accept the Rural Housing Burden. Still, the model has attracted national interest because it’s low-cost, effective, and could work across Scotland. More phases are already being planned, and other communities are interested in using the same approach.