Community groups and landlords can use grants to build on their land

Rural Homes for Rent, which will be supported by �5m over three years, was announced by Communities Minister Stewart Maxwell.

The initiative aims to open up an extra source of land for housing which owners might otherwise be unwilling to sell.

The scheme should deliver about 100 new affordable homes for rent by 2011.

Under the scheme, rural landowners across Scotland, including community buy-out groups, will be able to apply to the Scottish Government for housing grants to help them build new affordable homes for rent on their land.

Pilot scheme

Communities Minister Stewart Maxwell 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 buy-out groups, who share our desire to maintain the long-term viability of rural areas.

"In return for the grant, we will expect them to conform to the highest standards already in place across Scotland, matching those offered by registered social landlords to ensure that this new approach will be a good deal for tenants."

The Scottish Rural Property and Business Association (SRPBA) has been closely involved in developing the pilot.

Sarah-Jane Laing, the SRPBA's housing strategy officer, said: "The houses built under this pilot scheme will make a significant contribution to meeting housing need in rural Scotland.

We have to make sure that landlords are in it for the long-term Gavin Corbett Shelter Scotland

"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."

Landowners applying for the scheme will need to show that they have a long-term stake in the area.

The scheme was welcomed by the housing charity Shelter, although it called for long-term rents to be made available.

Gavin Corbett, policy manager at Shelter Scotland, said: "It's hard to say - when there's a desperate shortage of housing - that we should be turning away anyone who could help to provide that.

"But I think there have to be conditions - we have to make sure that landlords are in it for the long-term.