Housing Services Activity Update- Strategic Housing investment plan Update (SHIP)
Argyll and Bute Council · 12 March 2025
Back to Oban Lorn & The Isles Area Committee — 12 March 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
ARGYLL AND BUTE COUNCIL OBAN LORN AND THE ISLES AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 12 MARCH 2025 HOUSING SERVICES ACTIVITY UPDATE - STRATEGIC HOUSING INVESTMENT PLAN (SHIP) – ANNUAL UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to update Members of Housing Services activity and progress with the Local Housing Strategy for the Oban, Lorn and the Isles area. This report will detail the following housing activity:- • Housing Emergency • Housing Need and Demand • Homelessness • Affordable Housing Supply - Strategic Housing Investment Programme (SHIP) • Empty Homes • Private Sector Housing Grant Adaptations • Private Sector Housing Grant Repairs and Improvements • Energy Efficiency - Energy Efficiency Scotland: Area Based Scheme(EES:ABS) • Local Housing Strategy 2.0 RECOMMENDATIONS 2.1 Members are asked to consider the content of the report.
Page 2
ARGYLL AND BUTE COUNCIL OBAN LORN AND THE ISLES AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 12 MARCH 2025 HOUSING SERVICES ACTIVITY UPDATE - STRATEGIC HOUSING INVESTMENT PLAN (SHIP) – ANNUAL UPDATE 3.0 INTRODUCTION 3.1 The main purpose of this report is to update Members of Housing Services activity and the delivery of the Local Housing Strategy within the Oban, Lorn and the Isles area. This report will detail the following housing activity:- • Housing Emergency • Housing Need and Demand • Homelessness • Affordable Housing Supply - Strategic Housing Investment Programme • Empty Homes • Private Sector Housing Grant Adaptations • Private Sector Housing Grant Repairs and Improvements • Energy Efficiency – Energy Efficiency Programme: Area Based Scheme • Local Housing Strategy 4.0 RECOMMENDATIONS 4.1 Members are asked to consider the content of this report. 5.0 DETAIL 5.1 As the Strategic Housing Authority for this area, the Council has a series of important statutory housing functions to fulfil. A Housing Need and Demand Assessment (HNDA) is carried out every 5 years which enables Scottish Government funding to be brought into Argyll and Bute primarily to deliver affordable housing. A comprehensive revision of the local HNDA was approved as “robust and credible” by the Scottish Government’s Centre for Housing Market Analysis in December 2021. The Council also produces a Local Housing Strategy (LHS) every 5 years. The LHS 2022-27 was approved
Page 3
by Full Council in December 2021. It is subject to annual updates, which are published on the Housing Strategy pages of the Council website. The LHS has been developed in accordance with Scottish Government guidance and local priorities as identified in the new HNDA. .This sets out the vision for Argyll and Bute: “Everyone in Argyll & Bute has access to a suitable, high quality home which is affordable and located within a vibrant, sustainable and connected community.” This report will detail the housing activity taking place in Oban, Lorn and the Isles. 5.2 Housing Emergency In June 2023, Argyll and Bute Council became the first local authority to declare a housing emergency. A number of key statistics informed the emergency. • In 2023 there were just under 3,300 people on social rented housing waiting lists, representing an increase of 8% since the previous year. • The average housing price in 2022 was £206,000 which is 7 times the average income level in Argyll and Bute. • 11% of all homes are ineffective stock, with 6% second homes and 4% empty. • 42% of the property sales are made to people living out with the Argyll and Bute area. • There were 131 private house completions in the last 5 years representing only 17% of the expected rate. • Constructions costs have seen a 22% increase in 2022 with island construction costs significantly higher. This trend is continuing currently. • 92% of residents responding to the Housing Emergency survey said that housing shortage was having an impact on their community • Of employers who responded to the workforce housing survey, 75% said a shortage of housing was a barrier to recruiting or retaining staff A copy of the Housing Emergency Summit Report held in November 2023 and associated progress reports are available here The housing emergency action plan developed in conjunction with partners at the Housing Summit has been appended to the Local Housing Strategy Annual update 2024, and will be fully embedded in to the next Local Housing Strategy. Members requested regular updates on activity to tackle the housing emergency including a set of metrics, which could be used as a benchmark to monitor progress. The housing system is complex and wide-ranging; the following table of statistics and indicators, which were approved by Council in November 2024, give a balanced representation of the housing system based on the issues across the housing market.
Page 4
* Consents Figure is June23-March24, & will be corrected for next year 5.3 HOUSING NEED & DEMAND IN OBAN, LORN & THE ISLES HOMEArgyll WAITING LIST November 2024 – Active Applicants (excluding applicants with 0 points i.e. no need) Minimum Bedroom Size Required TOTAL 0/1beds 2beds 3beds 4+beds Lorn 316 127 90 29 562 Mull & Iona 43 16 4 3 66 Coll & Tiree 11 6 2 2 21 OLI Totals 370 149 96 34 649 In addition there was a registered demand from almost 297 applicants who received nil points according to the Common Allocation Policy and therefore would be deemed not to have a defined housing need. This included 245 applicants for Lorn; 45 for Mull & Iona; and 7 for Coll & Tiree. For the Oban Lorn and Isles area as a whole, the majority of applicants (57%) require one bedroom and 23% require 2 bedrooms.15% require 3 bedrooms and 5% need 4 bedrooms or more. However, to establish actual need, the available supply must be factored into this, based on the available lets within the RSL stock during a year. HOUSING EMERGENCY - METRICS Year Measures 2023/24 2024/25 2025/26 Housing Completions – All Tenures 144 Planning Consents Granted 512* Resource Planning Allocation(RPA) £18.26m Resource Planning Allocation(RPA) spend Available Mid 2025 Strategic Housing Fund (SHF) spend £1.057m Number of Homeless Applications 492 Number of Households on social housing waiting list 3209 Multiple of median wage to median house price 5x (£35k / £175k) Number of Registered Short Term Lets 3031 Number of Second Homes 2811 Number of Empty Homes 2364
Page 5
Applicants per available RSL Let (Pressure Ratios) HOMEArgyll Applicants RSL Lets 2023/24 (HOMEArgyll only) Pressure Ratio Lorn 562 136 4:1 Mull & Iona 66 21 3:1 Coll & Tiree 21 3 7:1 OLI Totals 649 160 4:1 While the pressure ratios are only one factor in determining need and demand, they are useful indicators of areas where further analysis may be required. The fully revised Argyll & Bute HNDA 2021 takes account of a wide range of factors to determine existing need and future demand for new build housing, and demographic projections have a critical role in this assessment. Although the default population projections suggest a significant and continuous decline across Argyll and Bute, and consequently minimal or zero requirement for new build housing, the council has developed ambitious Housing Supply Targets based on an alternative, positive growth scenario for all areas. In this instance, 28% of the Argyll & Bute Housing requirement would be apportioned to Lorn; 4% to Mull & Iona; and around 1% to Coll & Tiree. Over the next 5 years this could amount to at least 480 new builds across all tenures for the OLI area as a whole. 5.4 HOMELESSNESS Homeless applications across the area increased slightly (118 up to 125) in the Oban, Lorn and the Isles area during 2023/24. These applications included 3 homeless application for Mull & Iona and 1 for Coll & Tiree. During 2023/24 there were 129 homeless cases closed in the Oban, Lorn and the Isles area. 127 of the cases were in the Oban and Lorn, 1 case in Coll & Tiree, and 1 case was on Mull. The figures below illustrate the number of homeless applications and cases closed for the period from 2019/20 to 2023/24.
Page 6
The main reasons for presenting as Homeless last year were “disputes with family/relationship breakdown – non-violent”, and “dispute with household violent or abusive”. 0 20 40 60 80 100 120 140 Applications Cases closed Applications Cases closed Applications Cased closed Coll & Tiree Lorn Mull & Iona Homeless Applications and Cases Closed 2019/20 - 2023/24 2019/20 2020/21 2021/22 2022/23 2023/24 0 5 10 15 20 25 30 35 40 45 50 1. Termination of tenancy/mortgage due to rent… 10. Dispute with household/relationship… 11. Fleeing non-domestic violence 12. Harassment 13. Overcrowding 14. Asked to leave 15. Other reason for leaving… 2. Other action by landlord resulting in the… 3. Applicant terminated secure accommodation 4. Loss of service/tied accommodation 5. Discharge from prison/hospital/care/other… 6. Emergency (fire,flood,storm,closing order from… 7. Forced division and sale of matrimonial home 8. Other reasons for loss of accommodation 9. Dispute with household violent or abusive Oban, Lorn and The Isles Combined Reasons for Homelessness 2023/24
Page 7
Rough Sleeping The Oban, Lorn and Isles area experienced an increase in the incidence of rough sleeping over the same period last year, with 16 cases (+3) in total across the area reporting that they slept rough the night preceding their presentation and 22 (+5) reporting that they had slept rough in the 3 months preceding their homeless application. These were disaggregated as follows:- AREA Number of Rough Sleepers in 2023/24 Night Before Application 3 Months Prior to Application Oban, Lorn area 16 22 Mull and Iona 0 0 Coll and Tiree 0 0 OLI Total 16 22 Argyll & Bute 33 56 5.5 AFFORDABLE HOUSING SUPPLY This continues to be a very challenging period for the construction sector and there is ongoing slippage in the new build programme due to disruption and shortages with materials and staffing. The Strategic Housing Investment Plan (SHIP) delivered 66 new affordable homes in Lorn in 2023/24. RSL PROJECT Units Funding LINK Dunbeg Phase 3 66 £35,322,200 Oban, Lorn and the Isles Total 66 £35,322,200 The Council recognises that households in the area have difficulty in affording to buy property for principal occupation and in that regard the Council encourages RSL’s to deliver Shared Equity properties in their developments. The Shared Equity model enables eligible households to obtain mortgages from as low as 60% of the value of the property with the Scottish Government retaining the remaining equity in the property. Of the 66 units delivered as part of Dunbeg phase 3 in 2023/24, 11 were shared equity properties and 5 properties were marketed and occupied as Mid-market rent. During 2024 so far, 6 units were delivered through the Port Appin development by West Highland Housing Association. Further sites/projects in the Oban, Lorn and the Isles area which are planned within the most current SHIP document:
Page 8
ACHA Tiree (10 units – 2026/27) Bay View Gypsy/ Traveller site (4 units – 2026/27) Additional commitment to 50 property acquisitions, across whole local authority area. LINK Dunbeg, Phases 4,5 & 6 (349 units in total – 2027/30) WHHA Tobermory, Mull Phase 3 (10 units – 25/26) Dalmally phase 1 (8 units – 25/26) Port Appin phase 2/3 (24 units – 26/27) Baliscate, Tobermory (12 units – 26/27) Campbell Street, Oban (4 units – 26/27) Lochawe phase 1 (16 units – 27/28) Salen (8 units 28/29) Craignure (12 units – 28/29) Dalmally phase 2 (6 units – 29/30) Ganavan (50 units – 29/30) Bunessan phase 2 (4 units – 29/30) In addition to the projects in the table above the Council has secured planning permission to deliver up to 12 houses for workers in Tobermory, Mull. This project is part of the housing element of the Rural Growth Deal. RSLs have also identified future opportunities, which they will continue to develop. These projects could be included in the later years of the SHIP. For example, ACHA is exploring options for sites in Appin, Coll, and on Mull such as Dervaig and Ulva. WHHA are considering sites in Oban town centre, as well as Craignure. LINK Group continue to scope options for development sites in Oban including Glencruitten. 5.6 EMPTY HOMES In 2023/24 there were 11 private empty homes brought back into use in OLI, with the assistance of the Empty Homes Officer, amounting to 37% all the empty homes brought back into use across Argyll and Bute last year (30). Council Tax Information on Empty Homes The following table breaks down the numbers of empty homes including those subject to premium Council Tax charge across the OLI area. The table does not include properties which are empty and exempt from Council Tax. The numbers of recorded empty homes can vary from day to day due to natural changes and reported numbers are snapshot from November reports.
Page 9
Council Tax Exemptions There are also a number of empty properties which are on the Council Tax register which are exempt from paying council tax. In OLI there are 206 properties which are empty and exempt from Council Tax. The categories for empty properties include: • Class 4A = Properties recently occupied but now empty and unfurnished (73); • Class 7A = Dwellings Empty Under Statute – Closing or Demolition Order (12); • Class 5A= Living/detained elsewhere (19); • Class 2A= Unoccupied-Renovation (10) • Class 6A= Deceased owner (92) Second Homes As at 1st November 2024 there were 751 registered second homes in Oban, Lorn and the Isles. This figure represents 28% of the total number of second homes in Argyll and Bute (2,666). Self-Catering Lets As at March 2024 there were 951 self-catering lets on the Rates register in the Oban, Lorn and the Isles area 43% of the Argyll and Bute total (2,210). OLI Council tax data as at 01.11.24 Number of properties on Council Tax register Empty Homes Properties subject to 200% council tax levy Total EMPTY Lorn 8,398 160 176 336 Mull & Iona 1,715 36 82 118 Coll & Tiree 496 17 25 42 OLI TOTAL 10,609 213 283 496 OLI Rates data as at 01.03.24 Number of self-catering properties Lorn 541 Mull & Iona 325 Coll & Tiree 85 OLI TOTAL 951
Page 10
Short Term Let Licence As at 1st March 2024, there were 1,352 applications for short-term let licences in OLI area. This was 44% total applications (3,031). These can apply to wide range of properties and can include home sharing, home letting, and secondary letting. There is a public register for all short-term lets, which can be accessed here. 5.7 PRIVATE SECTOR HOUSING GRANT – ADAPTATIONS In 2023/24, there were 18 individual adaptations installed across OLI with PSHG aid. 5.8 PRIVATE SECTOR HOUSING GRANT – REPAIRS AND IMPROVEMENTS In 2023/24, there were a total of 5 PSHG repair and improvement grants completed in OLI, (across Argyll and Bute, the total was 41). Total cost of the works was £68,048.84 of which PSHG covered £25,876.72. 5.9 ENERGY EFFICIENCY (ENERGY EFFICIENT SCOTLAND: AREA BASED SCHEME (EES:ABS)) There were 61 individual energy efficiency measures fitted to 52 properties across Oban, Lorn and the Islands in 2023/24 via the Scottish Government’s Energy Efficient Scotland – Area Based Scheme (EES-ABS), at a total cost of £362,562.39 with EES-ABS grants in support of this work amounting to £329,888.75. OLI Data as at 01.03.24 Number of short term let licence applications Lorn 803 Mull & Iona 443 Coll & Tiree 106 Bute & Cowal TOTAL 1,352 PSHG ADAPTATION COMPLETIONS 2023/24 HMA Grant Value Works Value ADAPTATION INSTALLED Ramp Stairlift Access Bathroom Adaptation Hoist Wash & Dry Unit External Drainage Connection Lorn £77,616.00 £117,732.70 2 3 2 9 1 1 0
Page 11
Current estimates of Fuel Poverty are based on Home Analytics data (Scottish figure sourced from The Scottish Fuel Poverty Advisory Panel):- Area Likelihood of Households in Fuel Poverty Extreme Fuel Poverty Lorn 36% 35% Mull and Iona 34% 38% Coll and Tiree 35% 42% Argyll and Bute 30% 25% Scotland (SHCS) 34% 23% 5.10 LOCAL HOUSING STRATEGY (LHS) 2022-2027 As the strategic housing authority for Argyll and Bute, the Council has a statutory duty to develop, implement and monitor a Local Housing Strategy over a five-year planning cycle, based on a robust and credible Housing Need and Demand Assessment (HNDA) for the area. Following completion of the previous Argyll and Bute LHS (2016-2021) last year, a comprehensive revision and update of the strategy has been approved by the council and formally launched in March 2022. The planning process was based on a robust process of consultation and stakeholder engagement, which has been acknowledged as an exemplar model for other local authorities by the Scottish Government, the CHMA, and the Scottish Housing Network LHS Forum. The revised HNDA was approved as “robust and credible” by the Scottish Government’s CHMA in 2021, and this has informed the revised Housing Supply Targets set out in the new LHS. These targets are based on a positive demographic and economic growth scenario for Argyll & Bute and include ambitious and challenging Housing Supply Targets for the Lorn, Mull & Iona, and Coll & Tiree HMAs over the next 5 years and beyond. Work has commenced on the preparation of the next HNDA due to be approved in 2026. The Local Housing Strategy is subject to annual updates and the 2024 update can be found in the Housing Strategy pages of the Council website Microsoft Word - Local Housing Strategy Annual Update 2024 - FINAL as at 170924 6.0 CONCLUSION 6.1 This report provides the detail of the Council Housing Services team activity in the Oban, Lorn and the Isles area and an overview of the progress achieved with the Local Housing Strategy Action Plan. There are a variety of housing issues within the area which are being tackled by Housing Services and partner agencies with the aim of delivering a functioning housing system which meets the needs of the communities we serve. The scale of the challenge is shown in statistical evidence and the declaration of the Housing Emergency and the subsequent Housing Emergency Summit has shown that many concerns are common across agencies and communities.
Page 12
7.0 IMPLICATIONS 7.1 Policy - Complies with approved SHIP and Local Housing Strategy. 7.2 Financial - None arising from this report. 7.3 Legal - We have a statutory duty to deliver statutory housing functions. 7.4 HR – None. 7.5 Fairer Scotland Duty: Positive in terms of delivering affordable housing. 7.5.1 Equalities - protected characteristics – None. 7.5.2 Socio-economic Duty - Positive in terms of delivering affordable housing. 7.5.3 Islands – Positive in terms of delivering affordable housing on the islands 7.6. Climate Change – The strategy and housing service deliver positive impacts for energy efficiency and climate change. 7.7 Risk – None. 7.8 Customer Service – None. 7.9 The Rights of the Child (UNCRC) – The housing activity described in the report will deliver affordable housing for families with children Kirsty Flanagan Executive Director with the responsibility for Development and Economic Growth Councillor Jim Lynch Policy Lead for Economic Development, Islands and Rural Communities, Housing January 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.murray@argyll-bute.gov.uk Matt Mulderrig, Development Policy and Housing Manager Matt.mulderrig@argyll-bute.gov.uk Douglas Whyte, Team Lead – Housing Strategy douglas.whyte@argyll-bute.gov.uk APPENDICES Appendix 1 – Extract from LHS 2022 - 2027 (data as of 2021) Lorn Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2021) Mull & Iona Appendix 3 – Extract from LHS 2022 - 2027 (data as of 2021) Coll & Tiree
Page 13
Appendix 1 - Extract from LHS 2022 - 2027 (data as of 2021) Lorn LORN HMA is centred on Oban and includes a number of the small, inner isles such as Easdale, Luing and Lismore. Despite the influence of in-migration, it is the most self- contained housing market in Argyll & Bute with 64% of house sales going to local residents. There was limited interaction with neighbouring HMAs in the local authority (3%) but over 17% of demand is from the rest of Scotland and over 13% from the UK. Overseas house purchasers have only marginal impact in this area, at just over 1% of sales. Average house prices are comparatively high and affordability remains an issue, with a high price-to-income ratio of 6.7 (lower quartile). There has been significant development activity in recent years, and the total dwelling stock increased by 8% between 2015 and 2020, with significant new builds in development or in the pipeline, particularly at Dunbeg. Lorn has 18% of the total housing stock in Argyll and Bute. However, 8% of the stock comprises second/holiday homes and long-term vacant properties. With 1,649 RSL homes in 2020 the area also has the highest provision of social rented stock – over 19% of the authority total. Nevertheless, this area still has the largest waiting list in Argyll and Bute by far, as well as one of the higher levels of homelessness (30% and 18% respectively of the authority totals). In addition HNDA analysis suggests that this area has the second greatest level of backlog need (21% of total backlog need). Population Households Dwellings Ineffective Stock (%) RSL Stock Waiting List Applicants RSL Lets (2019/20) Pressure Ratio Lower Quartile House Price Lower Quartile Income LQ Affordability Ratio 16,053 7,648 8,604 8% 1,649 737 139 5:1 £120,000 £17,892 6.7 Lorn Key issues for Lorn HMA: Increasing the supply of affordable housing remains a critical priority for this HMA. The provision of Housing Options advice and information; and targeted Tenancy Support also remains important. Fuel poverty is an issue and improving energy efficiency will be important too. Ensuring that sufficient specialist provision (accommodation, adaptations, support services etc.) is available to meet the requirements of the ageing population and those with particular needs will also be key to a well-balanced, effective housing system.
Page 14
Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2021) Mull & Iona MULL AND IONA are combined for planning purposes as one HMA. As a housing market area, these islands exhibit the lowest level of self-containment in the authority area apart from Coll & Tiree, with less than 45% of house sales going to local purchasers. Around 16% of properties are bought by persons from elsewhere in Scotland; and over a third of all sales (34%) are to purchasers originating elsewhere in the UK, by far the highest proportion of any HMA in Argyll and Bute. Interaction with the rest of the authority is minimal with only 1.4% of sales originating in another local HMA. Mull & Iona have among the highest house prices in Argyll & Bute, well above the average for the authority as a whole and 3 times higher than Bute for example; and along with Islay, Jura & Colonsay; and Coll & Tiree, this is one of the least affordable housing markets for local residents. This area has seen less than 1% rate of growth in total stock, between 2015 to 2020; despite a range of RSL and community-led projects being proposed and progressed in recent years. This still amounts to only 4% of the total dwellings in Argyll & Bute. There is also a high proportion of ineffective stock here, with second/holiday homes and long-term vacant properties making up 15% of the total (albeit this is significantly lower than the last census recorded). The social rented sector totalled 236 homes in 2020, less than 3% of the sector total for Argyll & Bute as a whole and around 13% of the total housing stock on the two islands. There are around 6 applicants for every available let in the area, one of the higher pressure ratios in the authority. Population Households Dwellings Ineffective Stock (%) RSL Stock Waiting List Applicants RSL Lets (2019/20) Pressure Ratio Lower Quartile House Price Lower Quartile Income LQ Affordability Ratio 3,054 1,524 1,851 15% 236 113 20 6:1 £129,375 £18,189 7.1 Mull & Iona Key issues for Mull & Iona HMA: A small-scale targeted programme of affordable new build housing will help to sustain remote island communities. Tackling fuel poverty and improving energy efficiency remain key targets; and ensuring sufficient specialist provision is available to meet the requirements of those with particular needs will also be important.
Page 15
Appendix 3 – Extract from LHS 2022 - 2027 (data as of 2021) Coll & Tiree Coll & Tiree constitute the smallest HMA in the authority, and are most affected by house purchasers from out with the area – less than 20% of sales are to local residents, with almost half of purchasers originating elsewhere in Scotland and a further quarter from elsewhere in the UK. More house buyers originate from overseas (5.6%) than from the rest of Argyll & Bute itself (1.4%). Average house prices have been among the highest in Argyll & Bute (albeit the number of sales are very small) and this area has been one of the least affordable to local households with the highest price–to-income affordability ratio of 7.7. Since 2015, the total number of dwellings on the islands increased by almost 8% while the number of households increased by around 12%. Proportionately, this HMA has the highest level of ineffective stock in Argyll & Bute, by far, with almost a third being second/holiday homes or long-term vacant properties. In 2020 there were 54 social rented homes, which amounts only 0.6% of the total RSL sector in the authority. Demand for RSL properties is numerically low but given the limited turnover in existing stock the pressure ratio remains high at 6:1 (i.e. 6 applicants per available let). Population Households Dwellings Ineffective Stock (%) RSL Stock Waiting List Applicants RSL Lets (2019/20) Pressure Ratio Lower Quartile House Price Lower Quartile Income LQ Affordability Ratio 753 452 680 32% 54 19 3 6:1 £128,750 £16,644 7.7 Coll & Tiree Key issues for Coll & Tiree HMA: There is evidence of unmet need on these islands and minimal new build in recent years. Small-scale development of affordable housing for social rent could help to address the demand. The requirement for some form of specialist provision, particularly on Tiree, remains a potential gap which could be addressed by joint working between Housing and the Health & Social Care Partnership. Fuel poverty and energy efficiency also remain priorities for this area.