With its rugged landscapes and historic villages, rural Scotland offers a unique and picturesque lifestyle. However, beneath this beauty housing challenges continue to develop. Addressing these issues requires a multi-faceted approach to ensure that rural Scotland remains vibrant for generations to come.
One mechanism increasingly used to manage affordability and local housing needs is the rural housing burden - a legal tool that restricts how certain properties can be sold or who can buy them with the aim of supporting long-term community sustainability.
What Are Rural Housing Burdens?
Rural housing burdens are legal conditions added to the title of a property or house plot in rural locations by section 43 of the Title Conditions (Scotland) Act 2003 ("the Act"). The Scottish Government's policy objective was to ensure there is a stock of affordable homes in rural communities with small populations of under 10,000 people.
The burden allows a rural housing body to keep future properties within the local community by imposing a right of pre-emption (the right to buy back the property when put on the market or a private sale is agreed). The right remains enforceable on future sales and does not fall away even if exercised previously. Other conditions such as the property having to be used as the owners main residence can also be imposed to avoid purchasers buying properties to use as second homes which can impact values and the availability of housing stock in rural areas.
Rural Housing Bodies
The burdens can be created and applied by an owner of a residential property but can only be granted to a rural housing body. The consent of the nominated rural housing body is also required for the burden to be validly applied to the property.
If an organisation wishes to become designated as a rural housing body, they must apply in writing to the Scottish Government outlining how they intend to use rural housing body status.
The Scottish Government will assess the information submitted and if the organisation meets the criteria set out in section 43(6) of the Act (i.e. that the object, or function, of the body or, one of its principal objects or functions is to provide housing or land for housing), the application will be laid before parliament where the organisation will be formally designated a Rural Housing Body in a Statutory Instrument in parliament. Once the Scottish Statutory Instrument (SSI) is laid, the Scottish Government will write to the organisation advising them that their application has been approved by ministers and advising when it comes into force.
Rural Housing Bodies can be added or removed from the list of designated rural housing bodies.
Intended Benefits
Supporters of rural housing burdens argue that they help prevent displacement in areas where house prices are rising due to limited housing supply, tourism and second-home ownership. By ensuring that homes remain affordable and available to people living and working in the local area, the burdens are intended to preserve the social fabric of rural communities and allow essential workers and families to stay in the area.
From a policy perspective, they can be seen as a response to rural depopulation, infrastructure strain, and the growing imbalance between housing demand and local incomes.
Increasing Use and Broader Application
There are indications that rural housing burdens may become more common across Scotland. Several factors contribute to this trend including housing affordability pressures: With rural housing increasingly unaffordable for many local residents due to a combination of factors, burdens are being explored as a way to maintain affordable housing in rural areas.
Looking Ahead
Rural housing burdens are one of several tools being used to address Scotland’s rural housing challenges. Whether rural housing burdens become more widespread will depend on a range of factors, including public support, legal frameworks, and how the burdens are managed over time. While they offer potential benefits for community sustainability, they also introduce legal complexities that require careful consideration. Our Rural Business and Natural Capital Team can provide tailored legal advice and guidance on rural housing burdens.
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