Islanders win battle against 650 years of feudalism to buy their homeland

The residents of Britain's biggest privately-owned island have won their battle to shed 650 years of feudal shackles and become their own landlords.

The islanders of Gigha learnt yesterday they could take control of the 3,400-acre rocky outcrop three miles off the coast of Kintyre, despite bidding less than richer rivals for ownership of the island.

The 110 islanders, who formed themselves into a trust, were competing against three millionaires from America, Britain and France, who were keen to own their personal fiefdom and become Laird of Gigha. The selling agents, FPD Savills, announced that the islanders' offer, estimated at about £4m, had been successful but would not reveal how much they paid.

They have bought an island that boasts a grand country house, white sandy beaches, a nine-hole golf course, 37 cottages, a shop, a pub and a private airstrip.

The current owner, Derek Holt, a 74-year-old leisure group entrepreneur who divides his time between Gigha, London and South Africa, bought the island for £2.3m in 1992. Owing to ill health he put it up for sale in August this year at offers above £3.85m but a spokesman for FPD Savills had said it was expecting the final price to be a good 25 per cent more than that.

Mr Holt said yesterday, though, that he had agreed to a "substantial discount on larger offers" so the islanders could take control of the island. He took the final decision after examining the details of each of the bids with his lawyer. "This has been an exciting few weeks for my family and the islanders of Gigha ... we had no objection to the islanders bidding if that is what they wished," he said.

"The island community must now remember they are at the other side of the fence and will all have to become benevolent business people. Remember we are only a short time here, but Gigha will be here for ever." He added: "Good luck to the community, we hope they enjoy the challenges as my family has."

Willie McSporran, a spokes-man for the islanders, said last night that he was "delighted and overwhelmed" at the news. "We had some champagne to mark the announcement but there will be no major celebrations as we have another meeting," he said.

Many islanders have lived under the reign of several absentee landlords. When Mr Holt decided to sell, islanders thought the time was ripe for the community to take responsibility for their own prosperity and way of life.

Within six weeks the residents had formed a non-profit-making trust and secured a pledge of financial help from the Scottish Land Fund and Highlands and Islands Enterprise (HIE). Although the amount promised from each organisation has not been disclosed it is known that the Land Fund, set up with National Lottery cash, broke its£1m ceiling given to previous schemes. HIE also topped its usual limit of £250,000.

The balance will have to be found by the islanders, who so far are reported to have raised only £7,000, but are confident that more offers of support will come in now their bid has been accepted.

George Lyon, the Liberal Democrat MSP for Argyll and Bute, said that support had been so great for an islanders' bid that it was "almost untenable" for another private landlord to take over. The ownership of Gigha has become a political cause celebre for land reformers. Many claim the success of the community buyout will set an example to other tenant communities which, under the Land Reform Act currently going through the Scottish Parliament, are to be granted the right to buy privately-owned property.