NatureScot, the state agency which has owned the "nationally significant" hunting lodge since 1957, said on March 18: “We are disappointed Mr Hosking has taken the decision to withdraw his proposal to buy Kinloch Castle.
"NatureScot will continue to work with all parties to seek new arrangements for the castle that will provide long-term benefits to the island of Rum.”
Isle of Rum Community Trust said it was disappointed to be "informed that J Hosking has pulled out of his plan to buy Kinloch Castle" in a daily newspaper.
"It is perhaps never a good sign of things to come if a prospective major player in the life of our island chooses to communicate repeatedly with this community, on subjects of such importance, by these means, rather than in a more conventional manner.
"Indeed, dialogue with Mr Hosking and his representatives has rarely felt full, open and constructive and we feel vindicated in our concerns that this may have had negative implications for any future working relationships had the sale gone ahead.
"Since the announcement by NatureScot of the proposed sale of Kinloch Castle to this buyer in June 2022, Isle of Rum Community Trust (IRCT) has worked hard to ensure any sale must represent a good deal for the community who live on Rum.
"Over the last eight months, we have made a number of, we feel, reasonable requests to the proposed buyer, and the seller, relating to the possible positive and negative impacts on Rum of these proposals. None of these have been substantially answered. This has been unfortunate.
"We will continue to represent and stand up for our community and their majority views and for the wonderful environment and heritage of our island.
"We look forward to working with NatureScot, the Scottish Government and other partners in finding a sustainable future for the castle site which will deliver benefits to everyone on Rum and to the agendas of community empowerment and engagement, land reform, environment and net zero, as well as that of heritage."
A Scottish Government spokesperson said: “The Scottish Government and NatureScot remain focused on securing a sustainable future for Kinloch Castle and the opportunities that could bring to the Isle of Rum.
“Proactive community consultation and participation is key to determining the future of the castle. The Biodiversity Minister welcomes the work of IRCT, in partnership with the Scottish Land Commission and NatureScot on the future governance of Kinloch Castle. The Minister intends to meet with them to discuss this work when it is complete. She is also happy to meet with any potential buyers at the right point in the process.”
A sale would end more than 60 years of public ownership of Rum’s ‘nationally significant’ hunting lodge, since it was sold to the state by the widow of Sir George Bullough, the English multi-millionaire mill machinery magnate who built it in 1897-1900.
Over time, Kinloch Castle, described by the poet Sir John Betjemen as ‘an undisturbed example of pre-1914 opulence’, has been ravaged by leaks, damp, woodworm and dry rot, despite huge sums spent by NatureScot and its predecessor Scottish Natural Heritage (SNH) to keep it wind and watertight.
Kinloch Castle continued to operate as a hostel on the island until 2013 when it was closed by SNH. Three years later, SNH warned that the Grade-A listed building was facing demolition unless it could find £20 million for restoration.
Kinloch Castle remained open as a museum until early 2020, when the COVID-19 pandemic forced tours to end.
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