Housing Emergency – Local Housing Strategy Annual Update 2025
Argyll and Bute Council · 26 November 2025
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 26 NOVEMBER 2025 HOUSING EMERGENCY – LOCAL HOUSING STRATEGY ANNUAL UPDATE 2025 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. The underlying issues have developed over many years and many can be considered systemic, such as mismatch in supply and demand; lack of affordability in all tenures; the impact of demographic changes; skills shortages; escalating construction costs; and the varying fiscal and investment regimes that exist. Even though there is a declared Emergency, the responses to this will take time to develop, deliver and have effect. 1.2 As the Council is no longer a landlord, and does not build housing, it can affect change in the housing system only in certain ways. Since the declaration of the Housing Emergency the Council has continued to explore what it can do differently to make a difference in conjunction with our strategic partners, and this report presents members with an update on that work. It does this by: • Presenting the annual Local Housing Strategy (LHS) Update (Appendix 1). The LHS is the Council’s Statutory housing strategy, and the annual update reports progress against key outcomes in the LHS. • Providing an overview of progress on the Housing Emergency Action Plan, which has been incorporated into the LHS Annual update with the key linkages mapped. • Provides an update on the key Housing Emergency Metrics requested and approved by Members in 2024. • Augmenting the Housing Emergency Metrics with a synopsis of current activity in the housing system. 1.3 Some key progress highlights include; a reduction in homelessness, work to deliver worker housing in Tobermory; accelerated delivery of long term strategic development frameworks in Oban and Helensburgh to create a pipeline of developable land; award winning empty homes officers securing reuse of empty properties; redevelopment and reuse of properties by HSCP staff in remote areas; support for community housing groups; provision of dedicated worker accommodation by SSEN; and increased flexibility in the Home Argyll allocations policy.
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RECOMMENDATIONS 1.4 It is recommended that Council: i) Consider and approve the content of the Local Housing Strategy Annual Update. ii) Consider the ongoing activity and progress in relation to addressing the Housing Emergency. iii) Consider the metrics detailed in Section 4.13 of the report which provides an annual measure on progress in tackling the Housing Emergency.
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 26th NOVEMBER 2025 HOUSING EMERGENCY – LOCAL HOUSING STRATEGY ANNUAL UPDATE 2025 2.0 INTRODUCTION 2.1 The main purpose of this report is to inform Members on the Local Housing Strategy Update (Appendix 1). The production of the Local Housing Strategy is a statutory duty of the Council, and the current Strategy runs from 2022- 2027. An annual update on the Local Housing Strategy was one of the key actions when the Council declared a Housing Emergency in June 2023. 2.2 The report details progress made on the Outcomes within the Local Housing Strategy to date and incorporation of the Housing Emergency Action Plan within the LHS Update. The report also provides progress made on an agreed set of annual metrics 3.0 RECOMMENDATIONS 3.1 It is recommended that Council: i) Consider and approve the content of the Local Housing Strategy Annual Update. ii) Consider the ongoing activity and progress in relation to addressing the Housing Emergency. iii) Consider the metrics detailed in Section 4.13 of the report which provides an annual measure on progress in tackling the Housing Emergency.
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4.0 DETAIL THE LOCAL HOUSING STRATEGY ANNUAL UPDATE 4.1 The Council as the Strategic Housing Authority has a statutory duty to produce a Local Housing Strategy (LHS). The current LHS runs from 2022 to 2027. Appendix 1 contains the LHS Annual Update 2025. The LHS has four key outcomes: - • Housing Supply and Place-making • House Condition, Energy Efficiency and Poverty • Specialist Provision and Independent Living • Housing Options, Information and Support The following section of this report will provide detail on progress against the key actions within the outcomes Outcome 1 – Housing Supply and Place-making 4.2 The key aim of Outcome one is to facilitate access to sufficient suitable and affordable housing across all tenures. The 2024/2025 LHS update notes progress as follows: • 78 new house completions across all tenures. • 44 new affordable homes delivered through the Strategic Housing Investment Plan. • Eight properties brought into affordable housing supply through transfer of stock. • Two properties brought into affordable housing supply through open market purchase. • 19 properties brought back into affordable housing supply via Council/RSL Buyback and Acquisition Scheme. • Two community housing projects completed – Colonsay Community Development Company developed nine homes for low-cost ownership, affordable rent and worker housing; and Gigha Heritage Trust delivered five homes for affordable rent. • 42 Empty homes brought back into use with assistance from Empty Homes Officer. • Seven Empty homes brought into use for Health and Social Care staff via Shelter Empty Homes Project • As of April 2025, there was 3,024 households on HOMEArgyll Common Housing Register, which is a decrease of 5.8% on the previous year’s total of 3,209 • 663 households were allocated permanent social rented tenancies via HOMEArgyll. This is a decrease of 13.1% on the number of lets in the previous year of 763. Other RSL Lets from Trust, LINK group and Bield would raise total to 738 for 2024/25, which is still below target of 860. This reflects a continued low turnover of properties which could partially be attributed to efforts to support tenancies and the low new build rates.
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Outcome 2 – House Condition, Energy & Efficiency & Poverty 4.3 The key aim of Outcome 2 is to regenerate communities by improving the quality condition and energy efficiency of housing and by tackling poverty, including Fuel Poverty and Child Poverty and ensuring that Housing contributes to addressing the wider Climate Change agenda. The 2024/25 LHS update notes progress as follows: • 281 homes provided with energy efficiency measures through £2.179m of Energy Efficiency Scotland: Area Based Scheme funding • 53 Repair and Improvement Grants totaling £325k to improve property conditions • Home Energy Scotland had 1,786 referrals and 2,992 household interactions and helped with installation of 954 Warmer Homes measures • £5.444m of income generated for households in Argyll and Bute by the Council Welfare Rights Team • £2.051m of income generated for households by Argyll and Bute Citizens Advice Bureau • New Scheme of Assistance (SoA) approved by Council in April 2025. Outcome 3 – Specialist Provision and Independent Living 4.4 The key aim of Outcome 3 is to enable people to live well, with dignity and independently for as long as possible. The 2024/25 LHS update notes progress as follows: • 267 RSL homes received adaptations with SG Stage 3 funding • 60 Private homes were adapted with £625k SoA funding • 841 Technology Enable Care (TEC) installations • 12 (27%) of new affordable homes built were for specialist provision including wheelchair and amenity properties • Revised Housing Contribution Statement approved April 2025 Outcome 4 – Housing Options Information and Support 4.5 The key aim of Outcome 4 is to provide effective and timeous information, advice and support to help persons in housing need to make informed choices and decisions on the range of Housing Options available. The 2024/25 LHS update notes progress as follows: • 459 Homeless applications taken, a 7% reduction from 492 in 2023/24 • 35 referrals to the Mental Health/Addictions Housing Practitioner • 70.5% of households receiving housing support had a Planned Departure • Average time for homeless applicants to be offered permanent accommodation has increased to an average of nearly 35 weeks, an increase from 31 weeks in 2023/24 • Those sleeping rough the night before presenting as homeless has reduced from 7% to 4% of applications • Those sleeping rough within three months before presenting as homeless has reduced from 11% to 3.75% of applications
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INCORPORATION OF HOUSING EMERGENCY ACTION PLAN INTO THE LHS UPDATE 4.6 The Housing Emergency Action Plan was agreed in June 2024. Many of the actions relate to actions within the Local Housing Strategy and in order to incorporate these into the LHS, the linkages have been mapped as shown in in pages 47-59 of Appendix 1. The Housing Emergency Action plan is split into 4 key objectives identified in tackling the Housing Emergency: • Enable the Delivery of More Market Homes in Argyll and Bute • Enable the Delivery of More Affordable Homes in Argyll and Bute • Enable the Delivery of More Homes for Argyll and Bute’s Workforce • Making the Best Use of Existing Homes in Argyll and Bute 4.7 There has been good progress on some of the actions within the plan, and an example of these are detailed in the sections below. Enable the Delivery of More Market Homes in Argyll and Bute 4.8 Action - Implement a more flexible approach to infrastructure, roads and design requirements on development sites. • New Roads Guidance implemented. Action - Increase capacity within Council services key to housing development including Planning, Roads and Building Standards. • Development Management capacity increased. New Roads staff in place. Project Officer to support Housing Delivery Group. Increase to Building Standard fees will improve resources. Action – Repurpose vacant spaces/derelict buildings to deliver homes for sale or rent • Two Empty Homes Officers in post. Empty Business Property Officer appointed to work with commercial unit owners • Work is ongoing with Health and Social Care Partnership (HSCP) to repurpose a dental surgery in Bowmore to create accommodation for HSCP workers Action - Use rural housing burdens and RGD/Partnership Support for Regeneration Funding enabling developers to offer principal homes at a fixed price • RGD Business Case submitted with proposals to develop low-cost housing for sale with rural housing burden applied. Enable the Delivery of More Affordable Homes in Argyll & Bute 4.9 Action - Create funding mechanisms for Community Housing Trusts to finance feasibility studies, professional fees and approval process • Council approved Strategic Housing Funding to support Community Development Trusts with feasibility funding.
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Action - Evidence the demand for intermediate housing to enable an RSL development pipeline and deliver more MMR and low-cost homes for sale • Housing implemented monitoring procedures for mid-market rent demand, RSL engagement with quarterly updates via SHIP Group and delivery cost exercise being undertaken. Action - ACHA to develop a minimum of 300 new build homes of mixed tenure and a minimum of 50 buy backs by 2029 • Total of 313 homes are programmed by ACHA in the current Strategic Housing Investment Plan (SHIP), with an additional 65 units programmed for 2030/31. ACHA have completed over 30 buybacks since 2023 to increase supply of affordable housing. Enable the Delivery of More Homes for Argyll & Bute’s Workforce 4.10 Action - Deliver seasonal and temporary workforce accommodation using short term occupancy agreements • RGD Infrastructure enabling works are completed on Mull site to enable development of 12 worker housing units. Progressing detail of building construction and funding. • SSEN engagement in relation to workforce housing • The HSCP Empty Homes Project has delivered a number of housing solutions to provide accommodation for HSCP staff. Action - Develop a strategic approach to evidencing the need for workforce housing in the public sector • HI-REP Regional Transformation Opportunities (RTO) research published showing potential housing needs. • Depopulation Research to look at working age needs to retain them or attract back to the area. Action - Identify public sector land and buildings which could provide workforce housing via repurposing and change of use. • Housing Delivery Group on-going work stream. • Public Trawl notice opportunities • Empty Homes & Commercial Officers identifying opportunities • CPP Partners Action to identify suitable opportunities. CPP Housing Day held on 19th September 2025 to discuss actions. Make the Best Use of Existing Homes in Argyll & Bute 4.11 Action - Further reform CPO processes to tackle abandoned homes more effectively • Current Scottish Government CPO review consultation • Housing continue to explore options for CPO and advertised for back-to- back partner
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Action - Create more choice and flexibility within the HOMEArgyll policy to address identified housing pressures • HOMEArgyll Allocations Policy reviewed 2024/25. • Flexibility agreed to allocate two-bedroom homes to single persons in high pressure areas. Action - Increase the number of Empty Homes Officers with more flexibility to assemble funding • Two Empty Homes Officers in post. • HSCP Empty Homes Project – Phase 1 has concluded. Council/Shelter approved funding to extend project for two years to include support for all employers. Action - Develop a better range of housing options for older people to encourage movement in existing housing stock. • The 2026 Housing Need and Demand Assessment process will help inform local needs for ageing population. HOUSING EMERGENCY PROGRESS METRICS 4.12 Members approved an annual set of metrics in November 2024, to monitor and benchmark activity to tackle the housing emergency. Whilst the housing system is complex and wide-ranging, the agreed metrics on a range of statistics and indicators provide a balanced representation of the housing system and are based on the issues across the housing market which resulted in the declaration of the Housing Emergency in Argyll and Bute. The table below shows a 22/23 baseline year and two years of monitoring, and it is followed by an infographic. 4.13 The metrics demonstrate that whilst some progress is being made, many challenges remain. Although a significant number of houses have been granted planning consent, this is not reflected in the number of houses constructed, which has fallen in 2024/25. This illustrates the significant challenges that are being experienced financing and delivering infrastructure, materials and skills to sites in a cost effective and timeous manner. Notwithstanding those challenges, the affordable sector has increased the actual Scottish Government RPA spend to £10.6m. The number of households on the housing waiting list has reduced slightly, and significantly we have seen a small but welcome sustained reduction in the number of homeless applicants. Affordability remains stable but acute. Short term let license applications have begun to stabilize at about 3000 per year, which reflects the renewal rate. Over time, it is hoped the introduction of short term let control areas may see a small reduction in this number. The number of second homes has fallen slightly, most likely representing a transition to licensed short term lets on the NDR register. The number of long term empty homes has increased despite our ongoing work and remains a stubborn issue to address. .
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Table 1: Housing Emergency Metric HOUSING EMERGENCY - METRICS Year (as of 1st April) Measures Baseline 2022/23 2023/24 2024/25 Housing Completions – All Tenures 340 (180 Affordable) 144 (70 Affordable) 78 (44 Affordable) Residential Dwellings Granted Planning 289 units 536 units 531 units Resource Planning Allocation (RPA) £18.31m £18.264m £14m Resource Planning Allocation (RPA) spend £6.173m £8.157m £10.693m Strategic Housing Fund (SHF) spend £1.574m £1.057m £1.184m Number of Homeless Applications 512 492 459 Number of Households on HOMEArgyll register (social housing) 3,289 3,209 3,117 House Price Affordability 5.45 x Median income 5x Median income 5x Median income Total Number of Short Term Let Licence (STL) Applications n/a 3,031 2,949 Number of Second Homes 2,874 2,811 2,605 Number of Empty Homes (incl exempt & empty) 1,135 + 809 exempt = 1,944 1,451 + 913 exempt = 2,364 2,205 +910 exempt = 3,115
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HOUSING ACTIVITY OVERVIEW 4.14 There is a considerable volume of wide-ranging activities that has been undertaken or is underway to address the housing emergency. Whilst not an exhaustive list, in order to give members a fuller awareness of vital housing activity, the following detail will augment the statistics from the LHS and Housing Emergency Action Plans, with a snapshot of activity within the housing system.
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4.15 Preparing Strategic Development Frameworks - Consultants have been engaged, to develop the Strategic Development Frameworks for Oban (OSDF) and Helensburgh (HSDF). These are intended to identify strategic development opportunities over the long-term of 20-40 years. These 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. A range of desk-top and baseline surveys have been ongoing, and preliminary options are being developed for assessment. The process involves early engagement with community representatives, members, and key stakeholders. These pieces of work will feed directly into LDP3. 4.16 Delivering Affordable Housing – 44 new affordable homes were built in 2024/25 located in Helensburgh, Appin, Lochgilphead and Islay. This included 38 units for social rent and 6 properties for New Supply Shared Equity (NSSE). In addition, Trust and West Highland Housing Association both acquired property on the open market to meet specific housing needs. Following transfer of stock to Fyne Homes they completed renovation work to eight affordable flats in Rothesay raising the annual completion total to 54. This demonstrates the different approaches being taken to increase the supply of affordable housing. There are a number of RSL development projects currently on site, with 52 units expected to complete during 2025/26. Due to changes in Scottish Governments Affordable Housing Supply Grant funding, from 2026/27 this will include funding to undertake improvements to Gypsy/Traveller sites. There are two sites in Argyll, both of which require substantial investment and have been included in the next Strategic Housing Investment Plan (SHIP). The next five-year SHIP covering 2026/27 to 2030/31 sets out planned delivery of 1,115 homes during this period. With a number of other developments programmed for completion in 2031/32, there is an opportunity to bring some of these forward to mitigate any slippage in the programme. Our RSL partners remain committed to exploring further development site opportunities.
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4.17 Community Led Housing – There has been an increasing interest from a number of community organisations to deliver housing to meet local needs. With Gigha Heritage Trust completing five new homes in 2024/25 for affordable rent. Colonsay Community Development Company developed nine units for low-cost ownership, affordable rent and worker housing. The development has included the involvement of MOWI fish farms, who have invested over £1M to secure allocation rights for two of the units as worker housing. Both projects were supported with significant contributions by the Strategic Housing Fund. With a number of on-going community projects at various stages, there is potential for these to deliver over 100 community owned affordable housing units over the next few years. Through the Community Housing Network, the Council will continue to offer support and guidance for housing projects. 4.18 Buyback Scheme The Council started promoting the Buyback scheme in June 2023. As of October 2025, this has generated 119 enquiries through the Housing Service and directly to RSL partners. Around 40 properties have been acquired to date with others currently being progressed. The initiative is supported by funding from both the Scottish Government and Strategic Housing Fund and is an efficient and effective way to increase the supply of affordable housing. The buyback scheme provides a mechanism to meet specific housing needs in areas of high pressures, can be a solution to acquire properties that are suitable for households with complex particular needs, and can also prevent homelessness where a property owner is considering selling a property which is currently tenanted. 4.19 Rural Growth Deal – Housing Projects The Council is working with MICT to deliver worker housing in Tobermory, Isle of Mull. The on-site infrastructure is now complete. Work is underway to procure tender costs for construction of the 12 units. It is anticipated that building construction will commence in 2026. Options for delivering market homes for principal occupation on the Isle of Islay is on-going.
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4.20 Worker Housing – Empty Homes The two-year HSCP Empty Homes project ended in October 2025. This phase of the project delivered a number of key outcomes, including substantial cost savings for the HSCP and provided a range of housing options for HSCP staff. Examples of properties brought into use and on-going projects include: • Former Doctor and Nurses houses on Coll which had been empty for a number of years, fully renovated and brought back into use. • Tigh A Ruhda Care Home Flat on the Isle of Tiree which had been long-term empty, renovated and brought back into use. • Long-term empty ACHA property in Connell is being renovated and converted to a House of Multiple Occupancy to provide accommodation for up to four workers. • NHS Dental Surgery on Islay which has been closed for several years, is being progressed for change of use to provide a two-bedroom property for workers. • A number of RSL homes have been secured to provide permanent or temporary accommodation to sustain the workforce. • Pro-active engagement with private owners, has secured a number of properties across the area specifically for HSCP workers. This project has received a number of national accolades, including winning the Empty Homes Network national ‘Innovation’ award in 2025. The Council and Shelter Scotland have agreed funding for phase 2 of the project which will be expanded to support all employers and employees looking for affordable accommodation to help with retention and recruitment of local workers. 4.21 Worker Accommodation from Infrastructure Providers The Council are working with SSEN to deliver their worker housing strategy in association with the delivery of the infrastructure projects they have ongoing. One priority being explored is the potential for investment by SSEN in legacy housing.. Principle activity to date has seen the development of dedicated worker accommodation being provided at Kilmory Industrial Estate and the refurbishment of the MUTU Hotel in Dalmally for worker accommodation. These successes will have a significant effect in reducing the negative impact of workers flooding the local housing market.. 4.22 Housing Delivery Group The group has had a key focus on reviewing and assessing Council assets and opportunities to deliver affordable housing across the area. This includes looking at land and repurposing of buildings, examples include:
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• Review of all Council landbank sites • Undertaking feasibility of development sites on Isle of Tiree, and option to convert a building to residential use • Assessing options for land and buildings in Helensburgh • Reviewing options for Council property on Isle of Coll • Identifying options for land owned in Campbeltown • Working with RSL partners on sites in Lochgilphead 4.23 Community Planning Partnership (CPP) – Housing Day The CPP facilitated a housing focused session with partners on 19th September 2025. Housing is one of the three key priorities of theOutcome Improvement Plan. This event was an opportunity for all CPP partners to identify how they can collectively contribute to the Housing Emergency Actions. 4.24 Strategic Housing Fund (SHF) In February 2025, the Council approved a decision to extend the scope of the SHF to allow support to be given to community groups for early feasibility studies for identified housing projects. This helps communities overcome a common obstacle in housing development by helping with some of the main early costs in deciding whether a project is feasible or not. Five community groups have had feasibility funding approved for projects aiming to deliver a total of 31 houses. The SHF continues to support the RSL development programme and acquisition of properties to deliver affordable housing. In addition, West Highland Housing Association were recently awarded funding to undertake feasibility works to identify infrastructure solutions to deliver housing in Ganavan. The SHF has also supported several empty homes projects to address worker accommodation solutions. 5.0 CONCLUSION 5.1 Argyll and Bute Council was the first Council in Scotland to declare a housing emergency, and this has been followed by numerous Councils and the Scottish Government. 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.
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5.2 This report demonstrates the wide range of actions that are being taken forward. T he 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. 6.0 IMPLICATIONS 6.1 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 Two: Housing. 6.2 Financial – There are no financial implications arising from this report. However, future housing delivery actions will require additional funding at some stage from the Council and our partners if delivery is to be accelerated. 6.3 Legal - None 6.4 HR - None 6.5 Customer Service - None 6.6 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. 6.7 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. 6.8 Fairer Scotland Duty – None. 6.9 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 meets the needs of specialist groups. 6.10 Consumer Duty - None 6.11 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. 6.12 Children’s Rights and Wellbeing -The delivery of housing will enable more children to have a safe secure environment. The housing plans also have clear links to the Child Poverty Strategy.
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Kirsty Flanagan Executive Director with Responsibility for Development and Economic Growth Councillor Jim Lynch Policy Lead for Economic Development, Islands, Rural Communities and Housing October 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 - Argyll and Bute Local Housing Strategy Annual Report 2025