House prices have soared once more across the Highlands and islands, putting more strain on fragile communities dealing with a population drain.
The latest snapshot shows the north and west again far outstripped the Scottish average.
It’s the latest sign of pressure in a region already dealing with the loss of younger people, a boom in retirement age residents, and pressure on crucial tourism-related business.
House price more than doubled
In the years since 2004, prices have more than doubled to £223,962 in Highland.
They increased by a whopping 172 per cent to £212,635 in Orkney, and by similarly huge margins in Shetland and the Western Isles.
Across Scotland, official government numbers show an 89% increase.
Successive governments and numerous community groups have tried to address the pressure.
We firmly believe that the benefits should be felt closest to the farms themselves.
– Salmon Scotland.
And in the latest search for a solution, a salmon fisheries body hopes to convince the Crown Estate to funnel millions of pounds worth of licensing money towards affordable housing.
Salmon Scotland previously asked for help when house prices were shown to be spiralling earlier this year.
The proposal would divert money from Edinburgh to coastal areas where there are fish farms, similar to a scheme in Norway.
The group’s chief executive, former MSP Tavish Scott, now hopes the latest house prices will provoke action.
“The shortage of affordable housing in island and Highland communities has become an escalating crisis,” he said.
“People are struggling to find homes, and businesses face difficulties in recruiting or retaining staff because they’re priced out of the local housing market.
“Scotland’s farm-raised salmon sector creates vital jobs and wealth in coastal areas, and we firmly believe that the benefits should be felt closest to the farms themselves.
“We want the millions salmon companies pay to the Scottish Government’s landlord to be used to build affordable housing for local workers, ensuring that the economic success generated by Scotland’s biggest food export is shared in the communities where we operate.”
Highlands and islands gain £28m
The Crown Estate is worth £568m and invest in property, natural resources and people to generate value for Scotland. Revenue profits are paid to the Scottish Government which can them be redistributed to benefit coastal communities.
Since 2017, around £40m of profits have been passed by Scottish Government to coastal local authorities to support community-led initiatives, including economic regeneration and job creation.
A report from Highland Council in recent days raised concerns about people “drifting away” from regions such as Caithness and the western Highlands.
Populations have grown nearer Inverness, but fell by 18% in Mallaig.
Housing quality is ‘essential’
A Scottish Government spokesperson said good quality housing is essential to attract people.
“From April 2016 to March 2023, the Scottish Government has supported the delivery of more than 10,000 affordable homes across remote, rural and island areas,” the government said.
The target is for 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% in remote, rural and island communities.
The government says £3.5bn of funding is available this parliamentary term towards affordable housing.
A spokesman for Crown Estate Scotland said more than £40m has been passed to the government for support in these areas.
“This funding is in addition to money distributed directly by Crown Estate Scotland to people and communities to help with a range of projects and initiatives, which in the past three years has included support for affordable rented housing for older people in Orkney, low-cost housing for health & social care workers in Arran, and the development of six fuel-efficient affordable homes in Skye,” the spokesman added.
Conversation