Affordable Housing in Perthshire

Shortages in the supply of affordable housing in Perthshire could have a significant impact on the future economic prospects of the area. Many local employers have been struggling to recruit and retain staff in recent times as the cost of living in rural areas continues to rise. Despite record levels of investment in recent years, high land and infrastructure costs mean new housing is increasingly expensive to build. House prices in Perth and Kinross have historically been above the national average, and have increased by around 35% in the last 2 years¹, while average earnings in many parts of rural Perthshire are below the Scottish median due to reliance on agriculture and the tourism industry. Although the market has recently experienced a dip in prices as the effects of the credit crunch begins to take hold, there remains a serious lack of affordable housing across the region.

Perthshire Housing Association’s Chief Executive, John Kernahan, explained “We have seen phenomenal growth in house prices in recent times, particularly in Highland and Eastern Perthshire. When combined with rising food prices and high fuel costs, the effects on rural communities can be devastating as people increasingly find they can no longer afford to live and work in these areas. The provision of good quality affordable housing in Perthshire is therefore vital for the future success of the region’s economy, and is an issue that needs to be urgently addressed”.

¹Source: Halifax Bank of Scotland