The ‘Rural Homes for Rent’ pilot scheme, which will be supported by £5m in funding over three years, will enable rural landowners and community buyout groups to apply for Scottish Government housing grants to help them build new affordable homes for rent on their land. 

The scheme is expected to deliver around 100 new affordable homes for rent by 2011 and will complement the work already being done by Registered Social Landlords (RSLs) in rural parts of Scotland. 

Maxwell, who announced the scheme during a speech to the Rural Housing Service Conference in Dunkeld today said increasing the number of affordable housing is “essential” for the future health of rural communities. 

He said: "Too many people in rural Scotland are facing an uphill struggle to find an affordable home and it's therefore absolutely crucial that we explore fresh ways of increasing the number of homes built. This is essential for the future health of our rural communities. 

"This pilot scheme, backed by £5m of Scottish Government money, will work with established landowners and community buyout groups, who share our desire to maintain the long-term viability of rural areas.” 

In return for the grant, Maxwell said the Government will expect applicants to conform to the “highest standards” already in place across Scotland, which he said should match those already offered by Registered Social Landlords. 

This, he said, should ensure that this new approach will be a good deal for tenants, adding: "Because the grant recipients already own the housing land, they won't require as much in grant money - making it a good deal for the Scottish taxpayer too." 

The scheme, which will start accepting applications from April, has been developed with help from the Scottish Rural Property and Business Association (SRPBA).  

Sarah-Jane Laing, Housing Strategy Officer, SRPBA, said the houses build under this pilot scheme will make a “significant contribution” to meeting housing need in rural Scotland. 

She added: "The SRPBA has a large number of members eager to take up this opportunity to provide additional, good-quality rented accommodation and build on the crucial role that rural landlords already play."