The future of a pioneering organisation that has enabled hundreds to access affordable homes across rural and island Scotland is in jeopardy.

For nearly three decades, the award-winning Communities Housing Trust (formerly The Highlands Small Communities Housing Trust) has helped deliver about 500 community-led affordable homes in some of Scotland’s most fragile places. Working with residents, landowners, community groups, local authorities and partners, it has supported people to remain in their local areas, bolstering economies and helping to stem depopulation.

The Trust has now begun winding down operations and faces the prospect of closure, citing the financial strain of supporting communities to deliver new affordable housing. The move follows a Strategic Review conducted in 2024. Despite a long record of innovative projects across the Highlands, Islands and rural Scotland, the organisation says it can no longer operate sustainably in the current environment.

Any loss of the Trust would extend beyond the organisation itself, removing decades of specialist knowledge, relationships and hands-on expertise that are hard to replace. Without dedicated support, many rural and island communities could find it difficult to develop affordable homes, undermining the viability of local schools, health services, businesses and wider community life.

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Blair Allan, Chair of Communities Housing Trust, commented: "Communities Housing Trust has been at the forefront of shaping and leading the delivery of community led housing solutions for rural communities in the Highlands and Islands for more than a quarter of a century. For a long-time we have been the go-to organisation for communities looking to address depopulation in remote areas through the development and retention of new affordable housing for local people.

"The Trustees deeply regret having to make the decision to wind down the activities of Community Housing Trust. For a number of years, the Trust has been using its reserves to support the delivery of community led housing whilst striving to identify, what has proved to be an elusive sustainable business model in a challenging operating environment. The Trustees have had no choice but to take a decision to begin a managed withdrawal from all activities and to work to minimise the impact on all stakeholders, including staff, tenants and communities which will hopefully protect the legacy of the Trust.

"I would like to acknowledge the long-term support given by the Scottish Government, Nationwide Foundation and The Highland Council and the more recent support from Argyll and Bute, Moray and Perth and Kinross Councils. The establishment of More Homes Scotland should now provide an opportunity to provide a long-term commitment and design a system of support for the effective delivery of community led housing across Scotland.

"Affordable housing is one of the greatest challenges facing rural Scotland. Without organisations such as Communities Housing Trust to help communities identify opportunities, secure funding, navigate complex development processes and deliver housing projects, many initiatives simply will not happen. The consequences will be felt through continued population decline, an ageing demographic, reduced economic resilience and fewer opportunities for young people and families to remain or return to their communities.

"Communities Housing Trust has consistently demonstrated that locally led housing solutions can transform communities, unlocking development that may otherwise not take place and creating lasting social and economic benefits. The threat of closure places this vital work and the future of many rural and island communities at very serious risk. Sustained investment in specialist rural housing organisations is not simply an investment in homes; it is an investment in the long-term resilience, prosperity and future of Scotland's rural and island communities."