Housing Emergency Update
Argyll and Bute Council · 13 August 2025
Back to Oban Lorn & the Isles Area Community Planning Group — 13 August 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Argyll and Bute Community Planning Partnership OLI Area Community Planning Group 13th August 2025 Housing Emergency Update Summary In June 2023 the Council declared a Housing Emergency. There was a stake holders’ event in November 2023 which resulted in a Housing Emergency Action Plan being agreed in June 2024. The Community Planning Partnership is key to bringing forward many of the actions within the Plan. The Community Planning Partnership Outcomes Improvement Plan has highlighted housing as 1 main issue to be addressed through the Plan. This report will highlight housing activity in Argyll and Bute to address the Housing Emergency and also focus on the actions within the Action Plan of particular relevance to the Community Planning Partnership. 1. Purpose The purpose of this report is to provide CPG Members with a high level synopsis of the considerable volume of wide-ranging activity, which is underway, often well in advance of houses being completed and handed over, such is the long term nature of development. This synopsis is a snapshot of activity in the housing system in the last six months. 2. Recommendations CPG members are asked to consider the content of the report 3. Background Contained in the Full Report 4. Detail Contained in the Full Report
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5. Conclusions Contained in the Full Report 6. CPP Outcomes Does your report relate to any of the following: Outcome Tick as appropriate (🗸) Community Wellbeing Housing 🗸 Transport Infrastructure For further information please 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
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ARGYLL AND BUTE COUNCIL OLI CPG DEVELOPMENT AND ECONOMIC GROWTH 13th AUGUST 2025 HOUSING EMERGENCY UPDATE 1.0 EXECUTIVE SUMMARY 1.1 In June 2023 the Council’s Environment, Development and Infrastructure (EDI) Committee declared a Housing Emergency due to a consistent reduction in the supply of housing, a steady increase in demand for housing across all tenures and increasing levels of un-affordability. 1.2 In November 2024, Council agreed an update to the Local Housing Strategy, incorporating the Housing Emergency Action Plan, and a set of Housing Emergency Progress Metrics. It was agreed these would all be reported to Council annually in November. 1.3 The purpose of this report is to provide CPG Members with a high level synopsis of the considerable volume of wide ranging activity which is underway, often well in advance of houses being completed and handed over, such is the long term nature of development. This synopsis is a snapshot of activity in the housing system in the last six months. 1.4 Activity includes: engaging directly with Scottish Government; developing Strategic Development Frameworks to facilitate long-term delivery, securing national funding investment into housing projects in the area; working towards delivery of worker housing on Mull, engaging with infrastructure providers to provide worker housing; and partnering with RSL’s and community housing groups to facilitate housing developments. RECOMMENDATION CPG members are asked to consider the content of the report.
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ARGYLL AND BUTE COUNCIL OLI CPG DEVELOPMENT AND ECONOMIC GROWTH 13th AUGUST 2025 HOUSING EMERGENCY UPDATE 2.0 INTRODUCTION 2.1 The purpose of this report is to inform Members on progress made in terms of the Council tackling the Housing Emergency in Argyll and Bute. The last report on this issue was to Council in November 2024 Nov 2024 LHS Update and Housing Emergency Report . This report focuses on progress since that date. 3.0 RECOMMENDATION 3.1 CPG members are asked to consider the content of the report. 4.0 DETAIL 4.1 In November 2024, Council agreed an update to the Local Housing Strategy Incorporating the Housing Emergency Action Plan, and a set of Housing Emergency Progress Metrics. It was agreed these would all be reported to Council annually in November. The purpose of this report is to provide CPG members with a high level synopsis of the considerable volume of wide ranging activity which is underway, often well in advance of houses being completed and handed over, such is the long term nature of development. This synopsis is a snapshot of activity in the housing system in the last six months.
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Homes Consented 4.2 From the declaration of the Housing Emergency in June 2023 until the end of February 2025 the Council granted planning consent for 860 residential units. Scottish Government Engagement 4.3 In November 2024, Members of the Scottish Government, Local Government, Housing and Planning Committee, visited Oban. They met with the Council’s leader Jim Lynch, CEO Pippa Milne, other senior council officials, and representatives from the Link Housing Group together with a representative from the Colonsay Community Development Company. The day also included a visit to the Dunbeg Corridor housing development. The Scottish Government has produced a report of the visit which can be accessed here: Scottish Govt Report on Housing Emergency Visit to Argyll and Bute . A number of requests and suggestions for Scottish Government were made at the meeting and these are summarised in appendix 1 to this report. Preparing Strategic Development Frameworks 4.4 In January 2025 consultants were engaged, to develop the Strategic Development Frameworks for Oban (OSDF) and Helensburgh (HSDF). Both these are intended to identify long-term 20-40 years strategic development opportunities. By doing this we will set a long term framework that can be used to direct infrastructure investment and create a pipeline of deliverable development land, particularly housing supply but also other related community, public service and economic development land. Initial desk-top and baseline surveys have been ongoing and the development of preliminary options for
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assessment. Early engagement with community representatives, members, and key stakeholders are planned over the summer months. These pieces of work will ultimately feed in to LDP3. Securing External Housing Funding Investment 4.5 The Council has continued to develop Business Cases for the proposals for a worker accommodation pilot on Mull, and market housing for principal home occupation on Islay. In addition to the £3m Rural Growth Deal investment allocated to these projects, the Community Regeneration Fund has potentially been identified to provide up to a further £5m investment to enabling housing projects. Delivering Tobermory Worker Housing 4.6 The Council has employed local contractors and is working with MICT to deliver worker housing in Tobermory, on-site infrastructure is currently being installed and will be complete by July 2025. Work is underway to procure tender costs for construction of the worker housing which will provide 12 units. There is an anticipated site start for building construction of Spring 2026.
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Improving Home Energy Efficiency and Fuel Poverty 4.7 A Local Heat and Energy Efficiency Strategy was approved by Council in November. This sets out a policy framework that assists in reducing fuel poverty in the long term. Officers will now work to identify deliverable projects, and use the LHEES to support funding applications. 4.8 The HEEPS:ABS Programme allows homeowners and private rented tenants to reduce their energy bills, assists with the cost-of-living crisis and reduces energy consumption contributing to a reduction in climate change The Council fully utilised it HEEPS:ABS funding of £1,979,827 for 24/25. Looking at the full history of HEEPS:ABS Programmes, from 2013 to Sept 2024,there have been 4,161 energy improvement measure installations in Argyll and Bute. There has been a focus on external and internal wall insulation. Most of the properties are owner occupied, many built between 1950 and 1983. A significant proportion are in the most deprived areas of Argyll and Bute. Most properties experience a benefit in their EPC ratings meaning warmer and more efficient homes. Worker Accommodation from Infrastructure Providers 4.9 Officers continue to work with SSEN to deliver their worker housing strategy in association with the delivery of the overhead power line projects they have ongoing. Principle activity has seen the development of dedicated worker accommodation being provided at Kilmory Industrial Estate and other locations. The effect of this is to significantly reduce the impact on the local housing market, but also to provide servicing and infrastructure investment in the Kilmory Industrial Estate. There is ongoing engagement with SSEN at a Senior
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Management level. One priority begin explored is the potential for further investment by SSEN in legacy housing, and options are still being explored. Empty Homes for Workers 4.10 Our Empty Homes Officer project, working with the HSCP solely to assist empty homes owners to bring back properties in to use for HSCP staff has received national recognition through an award from the Empty Homes Network. This project is directly supporting the retention and recruitment of the key workforce required to sustain essential services and making the best use of existing stock. The role has directly enabled homes and bed spaces for use by HSCP workers on Coll, Tiree, Islay and in Connel.
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RSL Housing Provision & Pipeline 4.11 ACHA is exploring site acquisition options on Tiree which could deliver 10 units, but subject to ACHA satisfaction on local housing demand. 4.12 West Highland are exploring the feasibility of a 4 unit re-development in Campbell Street, Oban with Scottish Government and the Council. The re- development would be a key regeneration opportunity in the town as well as valuable affordable housing supply.
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4.13 West Highland has acquired land at Shillinghill, Tobermory, have achieved planning consent for 10 units, and are in the process of agreeing a grant request with Scottish Government. 4.14 West Highland is developing a planning application for 16 social rent units at Dalmally subject to site acquisition negotiations.
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4.15 West Highland is in the process of acquiring Dalmally Police House & Station subject to achieving planning and funding. 4.16 West Highland is working with the Council to design infrastructure works which will facilitate the development of the Old Hospital Site on Ganavan Road, Oban which would deliver 50 units. 4.17 West Highland is in negotiations with the contractor for Cruachan refurbishment project which is going ahead. The contractor will potentially utilise the West Highland’s Loch Awe site, facilitating construction of a road access and services which will later help to enable housing construction.
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4.18 In February 2025, LINK Group submitted four planning applications for phase 4 Dunbeg, which will deliver a Distributor Road Network including a trunk road roundabout, a phased commercial area, and 433 homes including: • Social Rent - 150 • Mid- Market Rent (MMR) – 48 • New Supply Shared Equity (NSSE) – 40 • Elderly Living – 31 (16 NSSE & 15 Rent) • Student Accommodation – 31 • Private Housing – 133
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4.19 At the same time, the Scottish Government has also agreed a ten year extension to the Council’s Lorn Arc TIF scheme. These are both major milestones in progressing to the start of construction for this significant investment in the Oban area, projected to add £179m in Net Present Value to the local area. Community Housing Projects 4.20 Tiree Community Development Trust has completed a purchase of land for housing development and have gained Rural and Islands Feasibility Funding. 4.21 The Hynish Trust on Tiree has been granted Strategic Housing Fund grants to bring back 6 properties back in to use, and they are exploring Rural and Islands Housing Fund to bring a further 6 properties back in to use. 4.22 Luing Community Trust has worked with second home owners to bring properties back into long term let rent for workers on the island. They are exploring new build opportunities. 4.23 South West Mull and Iona Development Trust is exploring housing opportunities in Bunessan and the Ross of Mull.
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4.24 On Kerrera, the MacDougall of Dunollie Preservation Trust is exploring options to refurbish the Ferry House on Kerrera for affordable housing. 4.25 Mull and Iona Community Trust (MICT) has set up an Iona Housing Steering group to look at delivering affordable housing on the island and bringing existing buildings on the island back in to use. The Iona Community is exploring redevelopment options of the MacLeod Building and are in discussion with MICT and the Council. 4.26 MICT is pursuing two open market housing acquisitions on Mull, in Dervaig and Craignure. They are looking to purchase land in Fishnish for delivery of new build affordable housing. 4.27 On Lismore the Lismore Community Trust are looking to deliver 2 affordable homes on the island with assistance of feasibility funding from the Council. 4.28 Dalavich Improvement group is working with the Council, using the Community Housing Assessment Toolkit to assess local housing needs and demand. 5.0 Argyll and Bute Outcomes Improvement Plan 2024 -2034 5.1 The Community Planning Partnership has been actively engaged with other partners in trying to find ways to tackle the Housing Emergency in Argyll and Bute. The Housing Emergency Action Plan identified several actions which the CPP can assist with delivering:- • Freedom to use Scottish Government housing funding more flexibly and as an allocation within local administrative control • Create funding mechanisms for Community Housing Trusts to finance feasibility studies, professional fees and approval processes • Deliver seasonal and temporary workforce accommodation using short term occupancy agreements • Develop a strategic approach to evidencing the need for workforce housing in the public sector • Deliver emergency workforce housing options including the use of modular, temporary and tiny homes • Identify and map public sector land and buildings which could provide workforce housing via repurposing and change of use • Develop a better range if housing options for older people to encourage movement in existing housing stock 5.2 The Outcomes Improvement Plan produced by the Community Planning Partnership has Housing as one of the main 3 outcomes which the Partnership will focus on for the duration of the Plan. 5.3 There will be a CPP Development Day later this year with a focus on housing and how the Partners can continue to work together to deliver on the actions within the Housing Emergency and also how Partners can meaningfully deliver
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on the fact that housing is one of the 3 main topics within the Outcomes Improvement Plan. 6.0 CONCLUSION 6.1 The Housing Emergency was declared due to a whole housing system failure and addressing the issues behind the failure will take time to address and require a partnership approach. Members requested periodic update in activity addressing the Housing Emergency. This report demonstrates the wide range of actions that are being taken forward within the context of reduced resources for the delivery of new homes at a national level. That said, the council continues to work with the Government, key agencies and our housing delivery partners to make progress including exploring new methods and solutions to tackle housing shortages across the local authority area, but many of these will take time to come to fruition. 7.0 IMPLICATIONS 7.1 Policy - the ongoing activity is consistent with current Council priorities and the Local Housing Strategy vision and outcomes which are directly aligned with the overarching objectives of the Outcome Improvement Plan – outcome 2: Housing. 7.2 Financial - none directly arising from this report but future housing delivery actions will require additional funding at some stage from the Council and our partners if delivery is to be accelerated 7.3 Legal – None. 7.4 HR – None. 7.5 Customer Service – None. 7.6 Risk - there is a risk of depopulation, damage to the economy a risk to delivering essential services in the local authority area if partners cannot effectively tackle the Housing Emergency. 7.7 Climate Change – new housing in the right location helps reduce carbon outputs when delivered using renewable energy and other measures. Making best use of existing stock by delivering energy efficiency measures helps towards achieving climate change targets. 7.8 Fairer Scotland Duty – Socio-economic Duty – the delivery of housing across Argyll and Bute facilitates socio-economic opportunities for all. The housing plans in the report link to the Child Poverty Strategy
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7.9 Equalities - protected characteristics - the activity outlined in the report is consistent with the aims and objectives set out in the Local Housing Strategy which is subject to an EQIA. There are targets within the housing plans to deliver housing which meet the needs of specialist groups 7.10 Consumer Duty – none 7.11 Island Communities – many of the housing projects detailed in the report are being delivered on islands which will provide many benefits such as employment and the continued delivery of essential services to island communities. 7.12 Children’s Rights and Wellbeing – the delivery of more housing will enable more children to have a safe secure environment. The housing plans also have clear links to the Child Poverty Strategy. Kirsty Flanagan Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch Council Leader and Policy Lead for Housing August 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
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Appendix 1 Actions suggested for Scottish Government during meeting with Scottish Government Local Government, Planning and Housing Committee (Nov 2024) Actions suggested for the Scottish Government: • Market failure needs intervention and radical thinking, and there needs to be a long- term and continuous approach to housing. • More funding flexibility is required, such as with the housing infrastructure fund (HIF). Devolution of funding to councils could be considered. • The council would like to be able to accrue funds from underspend in the Affordable Homes Supply Programme (AHSP). • There needs to be advance investment in critical infrastructure (such as a new access road to Dunbeg in Oban). • The AHSP Grant Benchmark threshold is too low to buy back properties – there needs to be a higher % of funding. • Community housing trusts are looking to deliver housing, but without expertise in development they need support and seed funding. • Key worker housing is important, and the council needs to be able to provide shorter tenures and dispose of sites. However, funding through the AHSP and other funds will not allow this. • A pilot of shorter tenures is taking place in Mull, which the council would like to fund through Resource Planning Assumptions. • Regulations on housing and planning need to be more joined-up in order to tackle a complex system, considering the impact of regulation on the whole system (such as a possible cladding levy negatively impacting on housing supply). • For example, currently an increase in council tax for second homes can be avoided by property owners registering their main residence in another authority (which is not charging increased council tax) as their second property; a combined approach across authorities may therefore be needed. • Consideration of a new Planning Use class for ‘non-principal homes’ would augment provisions for increased council tax, short-term let licensing and planning control areas. • Need for compulsory sales orders and for a land and property tax, which could lead to less people likely to ‘sit’ on land and property. The need for flexibility in funding and regulations: • With the Rural and Islands Housing Fund completions need to take place pre-election, which limits the feasibility studies that can be carried out now (as any project is unlikely to be completed pre-election). This demonstrates the need for long term certainty of funding, and the hope is that the fund will be reinstated post election. • There need to be more flexible grant conditions in the Affordable Housing Supply Programme and other funds. • Important to avoid unintended impacts of legislation e.g.: o Infrastructure levy would have negative impact on builds o Cladding levy – would be unfair for local developers who haven’t used cladding o Passivhaus standard – there are few contractors available, and they would not go to remote builds. Something instead ‘near’ Passivhaus would be sufficient and more cost effective.
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• Investment in renewals and transmission to the national grid could have an impact on housing – local distribution of renewable energy is needed.