Housing Emergency Update
Argyll and Bute Council · 19 June 2025
Back to Environment, Development and Infrastructure Committee — 19 June 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 COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 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 Members have requested regular updates on activity to tackle the housing emergency. 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 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 Members of the Environment, Development and Infrastructure Committee are asked to consider the content of the report.
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 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 RECOMMENDATIONS 3.1 Members of the Environment, Development and Infrastructure Committee are asked to consider the content of the report. 4.0 DETAIL 4.1 Members have requested regular updates on activity to tackle the Housing Emergency. 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 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. 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.
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Scottish Government Engagement 4.3 In November 2024, Members of the Scottish Government, Local Government, Housing and Planning Committee, visited Oban. They meet 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 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.
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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. 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. It is anticipated a site start for building construction in spring 2025. 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
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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 powerline 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. As a parallel activity, work is underway to establish if the vacant Muthu Hotel in Dalmally can be brought into use. This could potentially see an investment of over £1.5m into refurbishing the hotel although figures and contracts are to be confirmed. There is ongoing engagement with SSEN at a Senior Management level. One priority begin explored is the potential for further investment by SSEN in legacy housing, and options are still being explored.
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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 in Col, Connel, Tiree & Islay. RSL Housing Provision & Pipeline 4.11 ACHA has submitted a planning application for 37 units at Dalintober, Campbeltown and has programmed a site start by end of 2025 subject to achieving grant funding.
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4.12 ACHA is negotiating with Islay Estates to unlock delivery of 17 units at Bowmore Phase 4 which has planning consent. The Council is engaging with both parties to identify how necessary infrastructure might be facilitated. 4.13 ACHA has acquired land in Port Ellen, Islay which was identified in the LDP for 50 units (H3025). They are now exploring detailed design to identify an appropriate number of units and efficient use of the site.
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4.14 ACHA has acquired a site in Glenmachrie, Islay which has potential to deliver up to 27 units but this density of development needs to be explored with the planning department. 4.15 ACHA has acquired a site on Alexander Street, Dunoon which already enjoys planning consent. ACHA are exploring the potential to increase capacity of the site to 150 units subject to achieving planning consent
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4.16 ACHA is pursuing purchase of a site in Tayvallich which is part of H3015 in LDP2 and has potential to deliver 2 – 4 units. 4.17 ACHA is exploring site acquisition options on Tiree which could deliver 10 units, but subject to ACHA satisfaction on local housing demand.
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4.18 ACHA is exploring potential acquisition of land in Tarbet on LDP2 allocation H3024 which has the potential to deliver between 50 and 100 units. 4.19 ACHA are negotiating a turnkey development for 8 shared equity cottage flat units at Blairvadach, Rhu which is programmed to complete in April 2026. 4.20 ACHA has acquired Tarbet Police Station and are working on designs for conversion to a 2 bed bungalow. 4.21 Dunbritton Housing Association is engaged with identifying a suitable re- development for a site on Grant Street, Helensburgh which was the site of a former church. The site is constrained in terms of capacity but may deliver in excess of 10 units subject to achieving planning consent and a site start is targeted for spring 2026.
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4.22 Dunbritton is working with CALA to develop 30 affordable units in Cardross likely to be delivered in two phases and programmed to complete by Autumn 2027. 4.23 West Highland Housing Association is in the process of delivering 12 social rent and 4 shared equity units at Port Charlotte, Islay, and completion is planned for August 2025.
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4.24 West Highland is developing detailed designs for a further 6 units on the Port Charlotte site. 4.25 West Highland has handed over 16 social rent units and 4 shared equity uints at Port Ellen, Islay. Work is underway to deliver a further 20 units as Phase 5 of Imeraval, and this is due for completion December 2025. The Council Roads Department is engaging with Calmac to facilitate delivery of the necessary road surfacing materials. 4.26 West Highland are exploring the feasibility of a 4 unit re-development in Campbell Street, Oban with Scottish Government and the Council. The re-
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development would be a key regeneration opportunity in the town as well as valuable housing supply. 4.27 West Highland has commenced advance infrastructure works for 5 units at Port Mor, Colonsay, and due to complete in October 2025.
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4.28 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. 4.29 West Highland is developing a planning application for 16 social rent units at Dalmally subject to site acquisition negotiations.
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4.30 West Highland is in the process of acquiring Dalmally Police House & Station subject to achieving planning and funding. 4.31 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. 4.32 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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4.33 Fyne Homes has submitted a planning application for 16 units in Inveraray, but awaits re-design to account for noise mitigation resulting from adjacent BEAR Scotland depot. 4.34 Fyne Homes purchased land for the Baddens Phase 10 development and is currently pursuing planning consent for 14 units with a programmed completion date currently being November 2026.
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4.35 Fyne Homes has been granted a planning permission in principle for development of 55 units at Burns Brae/Wallace Way Lochgilphead. The site has been acquired from the Council and detailed designs are being developed. 4.36 The Council approved planning consent for the demolition of the Lower Academy Building, Rothesay. Fyne Homes is procuring a demolition survey to proceed to a tender for demolition costs. Discussions are ongoing with Scottish Government to fund the demolition.
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4.37 Fyne Homes is tendering for 8 social rent units at Ballochgoy Rothesay after the failure of a previous tender process involving modular construction. Site completion is currently programmed for summer 2026. 4.38 Fyne Homes completed re-development of 8 social units at Wilkie Houses, Rothesay in March 2025 with an opening in 2025. 4.39 Trust Housing Association, in partnership with Scottish Government and Argyll and Bute Council, has begun transforming their existing Manse Gardens, Strachur development into 16 fully refurbished and energy efficient homes for existing and new customers. Work began on site March 2025. 4.40 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 No • Mid Market Rent (MMR) – 48 No • New Supply Shared Equity (NSSE) – 40 No • Elderly Living – 31 No (16 NSSE & 15 Rent) • Student Accommodation – 31 No • Private Housing – 133 No.
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4.41 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
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investment in the Oban area, projected to add £179m in Net Present Value to the local area. Community Housing Projects 4.42 Colonsay Community Development Company has started handovers of a 12 unit mixed tenure dev at Scalasaig (SHF funding and loan included). 4.43 Isle of Gigha Heritage Trust is close to completion of 5 affordable units at Ardminish. 4.44 Tiree Community Development Trust has completed a purchase of land for housing development and have gained Rural and Islands Feasibility Funding.
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4.45 The Hynish Trust on Tyree 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. 4.46 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. 4.47 Colonsay Community Development Trust continue to advertise 3 self-build plots. 4.48 Ardkinglas Estate has submitted an expression of interest for Rural and Islands Housing Funding to deliver 4 affordable houses within existing buildings on the Estate. 4.49 Islay Development Initiative is pursuing a variety of housing proposals and the Council is engaging with them to pull together a single housing document approach. 4.50 South West Mull and Iona Development Trust is exploring housing opportunities in Bunessan and the Ross of Mull. 4.51 On Kerrera, the MacDougall of Dunollie Preservation Trust is exploring options to refurbish the Ferry House on Kerrera for affordable housing. 4.52 Tayvallich Housing Initiative has registered as a Private Landlord and has let two properties. They are exploring 3 sites with a potential to deliver 20 affordable homes. 4.53 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. 4.54 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. 4.55 Dalavich Improvement group is working with the Council, using the Community Housing Assessment Toolkit to assess local housing needs and demand . 4.56 Arrochar, Tarbet and Ardlui Community Council has worked with the Council to produce a local Housing Needs and Demand Assessment which would support funding applications. 5.0 CONCLUSION 5.1 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
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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. 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 2: Housing. 6.2 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 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 – 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. 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 meet 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.
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6.12 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 Policy Lead for Economic Development, Housing, Communities and Islands June 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 - Actions suggested for Scottish Government during meeting with Scottish Government Local Government, Planning and Housing Committee (Nov 2024)
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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
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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. • Investment in renewals and transmission to the national grid could have an impact on housing – local distribution of renewable energy is needed.