Scottish Government investment continues to help drive progress
The amount of vacant and derelict land in Scotland has fallen by more than a quarter since 2016 according to the latest annual survey.
Of 335 sites brought back into use in 2024, 192 – more than half – were reclaimed for housing.
Welcoming the figures, Public Finance Minister Ivan McKee said: “Redevelopment of vacant and derelict land for housing or businesses can turn an under-utilised asset into productive use and reduce the need for greenfield development.
“Reuse of vacant and derelict land can stimulate economic growth, create jobs, promote environmental justice and improved quality of life, and help to support communities to flourish and tackle inequalities.
“Our Vacant and Derelict Land Investment Programme has been a driver of this progress, with £36.5 million invested in 2021-22 which has resulted in a cumulative total of 468 hectares of vacant and derelict land being brought back into use.
“The fund will continue over the current year, and 11 projects will be supported by over £9.5 million of funding from this Programme in 2025/26.”
Projects to unlock economic growth and tackle poverty
Projects across Scotland will benefit from Scottish Government investment to help regenerate communities and drive economic growth.
More than £21.5 million from two Scottish Government funds will bring 24 disused or derelict sites and buildings into use, creating more than 160 jobs and support nearly 900 training opportunities.
Deputy First Minister Kate Forbes confirmed the 2025-26 allocations from the Regeneration Capital Grant Fund (RCGF) and Vacant and Derelict Land Investment Programme (VDLIP) during a visit to Powderhall in north Edinburgh.
City of Edinburgh Council will receive £1.4 million for remedial works at the former waste disposal site, paving the way for a housing-led regeneration project that will provide 259 homes, including affordable housing.
There’s also £60,000 for Spartans’ youth facility at Ainslie Park.
Other initiatives being supported include:
reviving a slate quarry in Cullipool owned and operated by the Isle of Luing Community Trust
converting a former tram depot in Dundee into a new transport museum
redeveloping a former derelict school into energy efficient housing units in Borrodale on the Isle of Skye
creating film production suites and a training centre at a former glue factory in Glasgow
extending Lochvale House community centre in Dumfries to include a café and soft play area
The announcement coincides with a call for expressions of interest in 2026-27 funding to support regeneration projects in disadvantaged communities. As set out in the 2025 Programme for Government, future Scottish Government support for regeneration projects will be channelled through one national fund – the Regeneration Capital Grant Fund – to streamline the application and delivery process.
The Deputy First Minister said: “This funding will help to transform derelict sites the length and breadth of Scotland, creating homes, jobs and facilities that drive economic growth, tackle poverty and help support and growing thriving communities.
“This funding forms part of a wider £62.15 million investment by the Scottish Government towards regeneration projects in 2025-26. This will help to revitalise green spaces, town centres and derelict sites to benefit people across Scotland.
“The 2025 Programme for Government stets out our renewed commitment to supporting regeneration projects across the country with one streamlined fund delivering this vision from next year.”
The RCGF is delivered in partnership with COSLA.COSLA’s Spokesperson for Environment and Economy, Councillor Gail Macgregor, said: “Today’s announcement sees the return of invaluable tools and resources for local authorities to help deliver on the regeneration aspirations of the communities which they represent.
“The diversity of successful projects on show demonstrates how localised approaches can deliver benefits across the country and showcase the best of partnership between local authorities and our communities to deliver economic and social renewal.
“We look forward to continuing to work with Scottish Government on regeneration in the months to come.”
City of Edinburgh Council’s Housing, Homelessness and Fair Work Convener Lezley Marion Cameron said: “Our development plans at Powderhall are breathing new life into an excellently located, long unused industrial site, and are set to deliver hundreds of much-needed new homes and work and community spaces too.
“The transformation of Powderhall is already well underway with the restoration of the former stable block, which retains unique heritage features of the site’s former use.
“Regenerating a historic, brownfield site like Powderhall is complex, challenging, and costly therefore I warmly welcome this Scottish Government investment.”
Regeneration Projects supported through the RCGF and VDLIP fund in 2025/2026:
Fund
Organisation
Project
Award
RCGF
Angus Council
Arbroath Courthouse Community Trust
£2,138,985
RCGF
Argyll & Bute Council
Fyne Futures Local Food Production and Training Centre
£250,000
RCGF
Argyll & Bute Council
Isle of Luing Community Owned Slate Quarry
£1,747,936
RCGF
City of Edinburgh Council
Spartans Youth Work and Education Building
£60,000
RCGF
Clyde Gateway
Baltic Street Play
£850,000
RCGF
Dumfries and Galloway Council
Let’s Get Sporty – Lochvale House
£1,572,370
RCGF
Dundee City Council
Dundee Museum of Transport – A Catalyst for Regeneration of Stobswell
Granton’s last remaining gasholder will be transformed following a £1.24 million award from the Scottish Government’s low carbon Vacant and Derelict Land Investment Programme.
Councillors at the Development Management Sub-Committee on 25 January approved planning permission for the next stage of redevelopment of the iconic Granton Gasholder.
Today, it was also announced that the project’s application to the Scottish Government’s Vacant and Derelict Land Fund has been approved. This will tie in with the overall programme of delivery and will secure up to £1.3m of further grant funding to take this stage of the works forward.
As the restoration of the Gasholder frame continues, work will begin in Autumn 2023 on public realm improvements to the surrounding land.
Ultimately, the goals of the restoration are to ensure development of the surrounding sites can take place whilst opening up the area to create a multifunctional public space that can be used and enjoyed by residents and visitors alike.
Community Wealth Minister Tom Arthur said:“Neglected sites are often found in more disadvantaged settings and can become no-go areas or hamper community development. By targeting long-standing vacant and derelict land we can ensure that investment reaches the areas that need it most.
“The Vacant and Derelict Land Investment Programme helps attract private investment to locations which have lain dormant for years. It also supports low carbon developments, helping Scotland reach net zero by 2045 and grow an economy that is greener, fairer, and more prosperous.
“This green space development at the Granton Gasholder will bring a significant boost for the community and enhance wider regeneration. I look forward to seeing the completed project.”
Council Leader Cammy Day said: “I am delighted that councillors have recently approved planning permission for the exciting high quality open space element of the redevelopment to the historic Granton Gasholder.
“The restoration of the Gasholder frame is already underway through funding provided by the Council and the UK Government’s Levelling Up Fund. With today’s announcement that we’ve been successful in our bid to the Scottish Government’s Vacant and Derelict Land Fund, we’re now able to progress our plans for creating an exciting public space which will see this iconic structure breathe new life into Granton Waterfront.
“This important development represents our plan to transform the structure, the centrepiece of our £1.3bn regeneration of Granton Waterfront, into a visitor destination with high quality open space for everyone to enjoy.
“The wider regeneration is about using brownfield land to develop a sustainable 20-minute neighbourhood its residents will be proud of. It will be an area where people live in affordable, environmentally friendly homes, have excellent transport and active travel links, and access open and green space, arts, sports, and culture. Restoring the Gasholder is the first step in unlocking the wider regeneration.”
A derelict site once central to the Clyde’s shipbuilding industry will be transformed following a £2.4 million award from the low carbon Vacant and Derelict Land Investment Programme.
The Govan Graving Docks were used for final painting and repair of vessels but have lain empty for 40 years. The Scottish Government award to upgrade a riverside walkway and create green space by 2025 is intended to help attract business investment, reverse biodiversity loss and habitat decline and create a visitor attraction.
Further restoration of the historic dockyard will see it used for repairing heritage vessels, while a footbridge linking the site to neighbouring visitor destinations including the Glasgow Science Centre is planned once private sector funding is secured.
It is one of 15 transformational schemes sharing £10 million in 2023-24 from the Programme. Other successful projects include:
Creation of a community learning campus on the site of a former Midlothian colliery
decontamination and redevelopment of former military land at Cromarty Firth to enable construction of 93 affordable homes
reuse of vacant and derelict buildings in Fife as an employment and training hub for rural green jobs and apprenticeships
support for community-led food production in Clackmannanshire
Community Wealth Minister Tom Arthur visited the Govan Graving Docks site to meet those behind the project. He said: “Neglected sites are often found in more disadvantaged settings and can become no-go areas or hamper community development. By targeting long-standing vacant and derelict land we can ensure that investment reaches the areas that need it most.
“The Vacant and Derelict Land Investment Programme helps attract private investment to locations which have lain dormant for years, It also supports low carbon developments, helping Scotland reach net zero by 2045 and grow an economy that is greener, fairer and more prosperous.”
Councillor Richard Bell, Depute Leader of Glasgow City Council, said: “The Govan Graving Docks is a unique site in Glasgow, offering both a glimpse of the city’s past and a view into a future where we realise the potential of this remarkable Clydeside location.
“The very welcome announcement of £2.4 million funding from the Vacant and Derelict Land Investment Programme will allow work to dramatically improve the appearance of the site, create new public green space to be co-designed by the local community, and improve access and connections to Glasgow Science Centre.
“The support announced today will hopefully act as a catalyst for future funding and the development of further stages in the regeneration of the Graving Docks.”
Projects to receive funding from Stage 2 of the Vacant and Derelict Land Investment Programme for 2023-24:
Some of Scotland’s longest standing vacant and derelict sites will be transformed into affordable housing, community gardens and places of enterprise and learning by awards from a £50 million programme.
Ten schemes will share more than £5 million from the low carbon Vacant and Derelict Land Investment Programme, driving regeneration and innovation while tackling climate change.
Successful projects include:
redevelopment of more challenging building plots to help deliver 133 net zero and affordable homes through the Edinburgh Home Demonstrator programme
installing heat pump technology to reduce carbon emissions for proposed commercial developments on vacant land at Magenta Business Park in South Lanarkshire
decontaminating and redeveloping former industrial land for social housing and outdoor pursuits near the Forth and Clyde Canal in the East Dunbartonshire village of Twechar
regenerating derelict land in east Greenock to create a Carwood Street Food Growing Project for local people in a less affluent area
Community Wealth Minister Tom Arthur said: “Derelict sites are often found in more disadvantaged areas and can hold back development of communities.
“This programme is delivering community regeneration and tackling climate change, in line with our national strategy to transform the economy and deliver sustainable and inclusive growth and a fairer society.
“At the same time as announcing these grants, we are opening the programme to projects seeking funding in 2023/24 and I look forward to building on the momentum generated by today’s investments.”
Depute Chief Executive at East Dunbartonshire Council Ann Davie said: “This funding is a welcome contribution that will aid us in regenerating the derelict former industrial canal site in Twechar.
“The funding can be used for land acquisition, soil remediation, utilities and access infrastructure, which will allow the site to be developed for social housing.
“These new homes will help us to achieve the energy efficiency aims we have set out for the site as each will be built to Passivhaus standards, resulting in low heating bill for tenants.
“This project also complements the work we’re doing in partnership with Twechar Community Action on the adjoining site, which recently secured Scottish Government Regeneration Capital grant funding, to help in the building of a new Outdoor Pursuits Centre. This will offer opportunities and benefits to the local community as well as attracting more visitors to the area.
The low carbon Vacant and Derelict Land Investment Programme is now open for Stage 1 (2023-24) applications. More information can be found here:
