William's Duchy of Cornwall estate invests £11million to build eco-homes on Isles of Scilly

All in all, when combined with separate initiatives from the local council and LiveWest housing association, approximately 60 new homes should be completed within the next three years.

The islands declared a housing crisis in 2022, following a lack of land and surging house prices.

"That could largely solve the housing crisis," Will Bax, the duchy's chief executive, told The Times.

"This is the first new building project of any scale on the islands for 20 years, so it hasn't been easy to get to this point."

The development represents a cornerstone of William's ambitious overhaul of his private estate, which will see approximately one-fifth of the billion-pound portfolio sold off to fund a £500million programme addressing Britain's housing shortage and environmental challenges.

The Prince of Wales, who assumed control of the duchy following his father's accession to the throne, plans to dispose of portions of the 54,000-hectare estate over the coming decade and concentrate resources on five designated "heartlands" where advisers believe the greatest positive impact can be achieved.

These priority regions comprise Cornwall, the Isles of Scilly, Dartmoor, the Bath area and Kennington in south London.

Mr Bax explained William believes the duchy "shouldn't just exist to own land. It should first and foremost exist to have a positive impact on the world".

Roughly £160million of the total investment is earmarked for housing schemes across Cornwall, the Isles of Scilly and the capital.

However, for Mr Bax, Scilly presents a "particularly challenging set of circumstances around being able to deliver significant returns on investment".

"While there are probably some businesses that will seek to do that on Scilly, we see our role as social enablement, and therefore we’ll set a rate in terms of return on investment at a level that reflects that social imperative and treats our capital as social capital," he said.

"In other parts of the duchy estate, around Bath and London, we think there is more scope to deliver positive change, but also reasonable financial outcomes for the duchy."

The housing crisis gripping the islands has reached critical levels, with the council warning four years ago the community could become "unviable" without intervention.

The archipelago's 2,200 permanent residents contend with soaring property prices driven by second homes and holiday lets, leaving vital workers such as firefighters, teachers and medical staff competing fiercely for scarce accommodation.

A one-bedroom former council flat on St Mary's can command a monthly rent of £1,600.

"The duchy doesn't rent anything at that rate," Mr Bax said. "Our job, regardless of the rise of the market, is that rents are affordable for islanders."

The duchy currently owns approximately 250 properties across the islands.

The duchy's environmental ambitions extend beyond housing, with plans for 100MW of renewable energy generation over the next decade, sufficient to power up to 100,000 homes.

An additional £20million will be directed towards nature recovery programmes in partnership with wildlife organisations and government bodies.

The Isles of Scilly Wildlife Trust, which manages roughly half the land on the islands for a nominal annual rent of one daffodil, has welcomed the renewed focus.

Julian Branscombe, the trust's chief executive, said the duchy had been "really keen to support this jewel in the crown of the duchy" since William took control and appointed new leadership.

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