A charity that was set up to tackle the housing crisis in Scotland's rural areas has announced it is to close after 20 years.

Rural Housing Scotland (RHS) said the "severe lack of funding opportunities and core funding" had given it no other option but to cease operations at a time when the need for more, affordable housing "remains urgent."

The Scottish Government funds the charity through the Rural and Islands Housing Fund (RIHF).

Founded on February 3, 2001, RHS was established to help rural communities across Scotland address housing needs, alleviate homelessness and improve poor housing conditions.

It was known for its pioneering approach, including the introduction of local housing needs surveys.

In one  instance, a dedicated staff member conducted surveys with ferry passengers travelling to and from the Isle of Mull.

Despite its success and the growing need for rural housing, the charity said it has faced significant financial challenges due to a lack of sufficient funding in recent years.

The charity gave a voice to rural communities facing housing shortagesThe charity gave a voice to rural communities facing housing shortages (Image: Colin Mearns) RHS said it had failed to attract sufficient core funding to sustain its operations.

Wendy Reid, Chair of RHS, said: “The challenges facing rural housing have not diminished, and it is with heavy hearts that we are announcing the closure of Rural Housing Scotland.

"However, we are proud of the role RHS has played in shining a light on these critical issues and raising awareness among policymakers and the public.

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"RHS extends its deepest gratitude to its dedicated staff, Board of Directors, supporters, and funders, as well as the many communities and landowners they have partnered with over the years.

"While Rural Housing Scotland will no longer be active, the charity emphasises that the need for affordable housing in rural areas remains urgent.

"RHS encourages others to continue the work it began, ensuring that Scotland’s rural and island communities remain vibrant with affordable and inspiring homes for all who wish to live there."

Mark Shucksmith, a rural sociologist and Emeritus Professor at Newcastle University said the closure was a "massive loss" for rural Scotland "not just for the provision of affordable housing but for the support of rural community groups and the networking of everyone involved in rural development in Scotland."

A spokeswoman for the Scottish Government said: “

A Scottish Government spokesperson said: “The Scottish Government recognises the support that Rural Housing Scotland has provided in supporting communities to progress rural housing projects.

“Its annual conference brought together a wide range of stakeholders to share views and experiences of delivering more homes in rural and island communities.

“We are providing a joint funding package, with Nationwide Foundation, of £960,000 to Communities Housing Trust and South of Scotland Community Housing.

“This funding will ensure that they can continue to support the delivery of more affordable homes in our rural and island communities.”

Rural areas face a myriad of complex issues that impede affordable housing including higher build costs and a lack of scale to attract developers.

Many jobs in rural areas are lower paid, with wages, in general, not keeping pace with inflation, which is compounded by the increases in housing costs.

This creates a barrier to attracting people to work in rural areas and retaining existing key workers.