Housing Services Activity Update - Strategic Housing Investment Plan (Ship) - Annual Update
Argyll and Bute Council · 5 March 2025
Back to Mid Argyll, Kintyre & the Islands Area Committee — 5 March 2025 and its agenda
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ARGYLL AND BUTE COUNCIL MAKI AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 5th 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 within the Mid Argyll, Kintyre and the Islands 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 this report.
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ARGYLL AND BUTE COUNCIL MAKI AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 5th 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 Mid Argyll, Kintyre and the Islands 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, 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. Full Council approved the LHS 2022-27 in December 2021. It is subject to annual updates, which are published on the Housing Strategy pages of the Council website.
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The LHS has been developed in accordance with Scottish Government guidance and local priorities as identified in the 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 details the housing activity taking place in Mid Argyll, Kintyre and the Islands. 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.
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* Consents Figure is June23-March24, & will be corrected for next year 5.3 HOUSING NEED AND DEMAND 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 Mid Argyll 124 48 16 15 203 Kintyre 67 22 17 7 113 Islay, Jura & Colonsay 76 32 13 5 126 MAKI TOTAL 267 102 46 27 442 In addition there was a registered demand from over 238 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 99 applicants for Mid Argyll, 64 for Kintyre, and 75 for Islay, Jura & Colonsay. For MAKI as a whole, the majority of applicants (61%) require one bedroom and 23% require 2 bedrooms, 10% require 3 bedrooms and only 6% need 4 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. Applicants per available RSL Let (Pressure Ratios) 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
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HOMEArgyll Applicants RSL Lets 2023/24 (HOMEArgyll only) Pressure Ratio Mid Argyll 203 143 1:1 Kintyre 113 101 1:1 Islay, Jura and Colonsay 126 23 6:1 MAKI Total 442 267 2:1 While the pressure ratios are only one factor in determining need and demand, they are useful indicators of areas where further research and 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, 9% of the Argyll & Bute Housing requirement would be apportioned to Mid Argyll; 7% to Kintyre; and around 6% to Islay, Jura & Colonsay. Over the next 5 years this could amount to at least 318 new builds across all tenures for the MAKI area as a whole. 5.4 HOMELESSNESS Homeless applications across the area have increased from 120 in 2022/23 to 134 for 2023/24. This included 47 applications in Kintyre, 72 in Mid Argyll, and 15 applications in Islay, Jura & Colonsay. During 2023/24, there were 130 homeless cases closed In the Mid Argyll, Kintyre and Islay area: Mid Argyll – 79, Kintyre – 38, and Islay, Jura and Colonsay - 13. The graph below illustrates the number of homeless applications and cases closed for the period from 2019/20 to 2023/24.
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The main reasons for presenting as Homeless last year were “disputes with household/relationship breakdown”, and “being asked to leave”. 0 20 40 60 80 100 Applications Cases closed Applications Cases closed Applications Cases closed Islay, Jura & Colonsay Kintyre Mid Argyll 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 1. Termination of tenancy/mortgage due to rent… 10. Dispute with household/relationship breakdown:… 11. Fleeing non-domestic violence 12. Harassment 13. Overcrowding 14. Asked to leave 15. Other reason for leaving accommodation/household 2. Other action by landlord resulting in the termination… 3. Applicant terminated secure accommodation 4. Loss of service/tied accommodation 5. Discharge from prison/hospital/care/other institution 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 Mid Argyll, Kintyre, Islay, Jura and Colonsay Reasons for Homelessness 2023/24 Isley, Jura & Colonsay Kintyre Mid Argyll
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Rough Sleeping Mid Argyll, Kintyre and Islay experienced an increase in the incidence of rough sleeping over the same period last year, with 2 cases (same as 2022/23) across the area reporting that they slept rough the night preceding their presentation and 4 (+2) 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 Mid Argyll 1 2 Kintyre 1 1 Islay 0 1 MAKI total 2 4 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 no new affordable homes within the MAKI area in 2023/24, however 20 units have recently been completed on Islay (July 2024). Four of these units were of shared equity tenure. RSL PROJECT Units Funding WHHA Imeraval phase 4 20 £4,386,780 Further projects in the MAKI area which are either already onsite or in early stages of development for future programming in the SHIP include: ACHA Dalintober (32 units – 2025/26) Bowmore Phase 4 (17 units – 2025/26) Tighcargaman, Port Ellen (60 units – 2026/27) Glenmachrie, Islay (30 units – 2026/27) Tarbert Police Station (1 unit – 2026/27) Inveraray (20 units – 2026/27) Tayvallich (2 units – 26/27) Dunchologan Gypsy/ Traveller site (7 units – 2026/27)Tarbert phase 1 (20 units – 2027/28) Tarbert phase 2 (10 units – 2028/29) Additional commitment to 50 property acquisitions, across whole local authority area. WHHA Colonsay (5 units – 2025/26) Imeraval Phase 5 (20 units – 2025/26) Port Charlotte(17 units – 2026/27); Port Charlotte phase 2 (17 units – 2026/27)
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FYNE HOMES Inveraray (16 units – 2025/26) Baddens phase 10, Lochgilphead (14 units – 2026/27) Lochgilphead phase 6 (55 units – 2027/28) Inveraray phase 2 (10 units – 2028/29) 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 Campbeltown, Lochgilphead and Inveraray, as well as further development sites on Islay. Fyne Homes are looking at options for Cairndow Phase 2. 5.6 EMPTY HOMES In 2023/24 there were 5 private empty homes brought back into use in MAKI, amounting to 17% all the empty homes brought back into use across Argyll and Bute last year with assistance of the Empty Homes Officer (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 MAKI 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 monthly reports. MAKI 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 Islay, Jura & Colonsay 2,318 41 102 143 Mid Argyll 5,828 107 131 238 Kintyre (including Gigha) 4,233 118 109 227 MAKI TOTAL 12,379 266 342 608 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 MAKI there are 317 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(164) • Class 7A = Dwellings Empty Under Statute – Closing or Demolition Order (41) • Class 6A = Deceased owners – where estate has not been settled (85) • Class 8A= Held for demolition (9) • Class 5A= Living/detained elsewhere (10) • Class 19A= Difficult to let separately (1) • Class 13A= Repossessed (1) • Class 2A= Unoccupied- Renovation (6)
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Second Homes As at 1st November 2024 there were 260 registered Second Homes on Islay, Colonsay and Jura, 182 in Kintyre and 390 registered Second Homes in Mid Argyll. The total figure for MAKI 832 represents 31% of the total number of Second Homes in Argyll and Bute (2,666). Self-Catering Lets As at 1st March 2024 there were 650 self-catering lets on the Rates register in the MAKI area. 29% of the Argyll and Bute total (2,210). Short Term Let Licence As at 1st March 2024, there were 840 applications for short-term let licences in MAKI area. This was 28% 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. MAKI Rates data as at 01.03.24 Number of self-catering properties Islay, Jura & Colonsay 250 Mid Argyll 267 Kintyre (including Gigha) 133 MAKI TOTAL 650 MAKI Data as at 01.03.24 Number of short term let licence applications Islay, Jura & Colonsay 339 Mid Argyll 349 Kintyre (including Gigha) 152 Bute & Cowal TOTAL 840
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5.7 PRIVATE SECTOR HOUSING GRANT (PSHG) – ADAPTATIONS In 2023/24, there were 25 private sector properties adapted with PSHG aid in MAKI. 5.8 PRIVATE SECTOR HOUSING GRANT – REPAIRS AND IMPROVEMENTS In 2023/24, there was 15 PSHG grants completed in MAKI, (across Argyll and Bute, the total was 41). Total cost of the works was £124,949.66 of which PSHG covered £48,283.93 5.9 ENERGY EFFICIENCY (ENERGY EFFICIENT SCOTLAND: AREA BASED SCHEME (EES:ABS)) There were 107 individual energy efficiency measures fitted to 82 properties across Mid-Argyll, Kintyre and Islay in 2023/24 via the Scottish Government’s Energy Efficient Scotland – Area Based Scheme (EES-ABS), at a total cost of £658,566.63 with EES-ABS grants in support of this work amounting to £587,821.35. 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 Islay, Jura and Colonsay 37% 43% Kintyre 34% 29% Mid Argyll 34% 35% Argyll and Bute 30% 25% Scotland (SHCS Figure) 34% 23% PSHG ADAPTATION COMPLETIONS 2023/24 HMA Grant Value Works Value ADAPTATION INSTALLED Ramp Stair lift Access Hoist Bathroom Adaptation Wash and Dry Unit External Drainage Collection Kintyre £78,791.63 £103,977.76 2 1 1 0 7 1 0 Mid Argyll £58,724.20 £81,048.06 0 3 1 0 7 0 0 Islay, Jura & Colonsay £7,381.60 £9,593.90 0 2 0 0 0 0 0 TOTALS £144,897.93 £194,619.72 2 6 2 0 14 1 0
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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 was formally launched in April 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 Mid Argyll, Kintyre, and Islay, Jura & Colonsay 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 Mid Argyll, Kintyre and Islands 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.
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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. 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 2020) Islay, Jura & Colonsay Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2020) Kintyre Appendix 3 – Extract from LHS 2022 - 2027 (data as of 2020) Mid Argyll
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Appendix 1 – Extract from LHS 2022 - 2027 (data as of 2020) Islay, Jura & Colonsay ISLAY, JURA & COLONSAY HMA combines the three distinct islands for strategic planning purposes. The overall population is estimated to have declined by 3% over the last five years, although individual island trends have varied. The combined total number of households for the three islands conversely appears to have increased by almost 6% suggesting increasing numbers of smaller and single-person households. The islands are not particularly self-contained housing markets with less than half (49%) of house sales going to local purchasers; and 2.4% of purchasers originating elsewhere in the authority area. Affordability is a major issue, with one of the highest price-to-income ratios in Argyll and Bute, at 9.0, and well above the standard affordability threshold. Since 2015 there has been an increase in the total number of dwellings (over 3% growth), particularly with a number of new build developments recently and ongoing on islay; but also small-scale pipeline proposals for Colonsay and Jura. Currently the islands account for 5% of the total stock in the authority. However, 16% of the stock comprises second/holiday homes or long-term vacant properties and is consequently unavailable to meet local need. In 2020 there were around 505 social rented homes across the islands which is an increase of over 14% in the sector during the last 5 years. Numerically, waiting lists may be small however turnover in the stock is also limited, therefore the pressure ratio is currently one of the highest in Argyll & Bute, with 7 applicants for every available let. Key issues for Islay, Jura & Colonsay HMA: • Further developments of affordable housing will benefit the sustainability and economic growth of the island communities. • Tackling fuel poverty and improving energy efficiency are priorities. • Ensuring appropriate specialist provision is available to meet the requirements of those with particular needs will also be important. 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 3,344 1,740 2,180 16% 505 186 27 7:1 £136,500 £15,208 9.0 Islay, Jura & Colonsay
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Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2020) Kintyre KINTYRE HMA covers the Kintyre peninsula south of Tarbert and for planning purposes also incorporates the Isle of Gigha. It is actually the second most contained Housing Market within the authority; 64% of all house sales are to local residents and less than 15% of sales are to purchasers from elsewhere in Scotland, the lowest rate of any HMA. Although local household incomes are amongst the lowest in the authority area, so too are average house prices and consequently, while a proportion of local residents are unable to afford on the open market, the affordability ratio is less excessive than many other areas. Kintyre accounts for 9% of the total dwelling stock in the authority, and there was an overall increase in the stock of 8% over the last five years, after a period of relative stagnation previously. The area also has a relatively low level of ineffective stock, though at 11% of the total this is still well above national levels. In 2020, there were 1,084 RSL homes in this area accounting for around 13% of Argyll & Bute’s total stock of social rented housing. Turnover is fairly healthy relative to the waiting list, and supply and demand therefore are reasonably balanced, however further development in this area would support regenaration and positive economic growth. Key issues for Kintyre HMA: • The focus in this area remains on repairing, maintaining, improving and managing existing stock; but there is scope for some judicious new build developments in line with the repopulation and growth agendas for the area. • Tackling fuel poverty and improving energy efficiency remain priorities. • The provision of Housing Options advice and information; Tenancy Support; and ensuring that sufficient specialist provision remains available to meet the requirements of those with particular needs will also be important. Kintyre 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 7,339 3,823 4,171 11% 1,084 121 86 1:1 £56,938 £12,449 4.6
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Appendix 3 – Extract from LHS 2022 - 2027 (data as of 2020) Mid Argyll MID ARGYLL HMA stretches from Inveraray to Lochgilphead and Tarbert and is the centre for much of the public sector employment opportunities in the authority, including Council headquarters. Only 54% of house sales in the area are to local residents (a significant drop in self-containment since the previous HNDA), but almost 9% were to purchasers from elsehwere in Argyll & Bute, one of the highest rates of internal movement within the authority. 20% of purchasers come from elsewhere in Scotland and over 16% originate elsewhere in the UK. This area tends to have higher than average income levels and consequently the price-to-income affordability ratio is slightly lower than most other HMAs. The total number of dwellings has increased by 2.4% between 2015 and 2020. Currently the area accounts for over 12% of the authority total. However, around 13% of the stock comprises second/holiday homes and long-term vacant properties and is therefore unavailable to meet local needs. In 2020 there were 1,033 RSL homes in the area, 12% of the sector total for Argyll & Bute. While turnover is relatively healthy in the RSL stock, around 9% of the total waiting list is seeking to be rehoused here and over14% of homelessness is located in this HMA. However, HNDA analysis suggested that less than 7% of backlog need is located in Mid Argyll. MID ARGYLL Population 9,123 Households 4,614 Dwellings 5,659 Ineffective Stock (%) 13% RSL Stock 1,033 Waiting List Applicants 221 RSL Lets (2019/20) 110 Pressure Ratio 2:1 Lower Quartile House Price £85,000 Lower Quartile Income £16,507 LQ Affordability Ratio 5:1 Key issues for Mid Argyll HMA: • A strategic programme of new build affordable housing will help to sustain economic growth and address unmet need in the area. • The provision of Housing Options advice and information; targeted Tenancy Support; and assistance to tackle fuel poverty and improve energy efficiency; and ensuring sufficient specialist provision is available to meet the requirements of those with particular needs will also remain key targets.