National Islands Plan: annual report 2023

Housing

Strategic objective 4 – Improve housing

Commitment 4.1 Ensure that Housing to 2040 truly reflects the distinct needs of island communities.

Commitment fulfilled – This commitment was fulfilled in 2021. Please see the National Island Plan 2021 Annual Report for further details.

Commitment 4.2 Ensure that the regulation of short-term lets takes account of the unique circumstances of island communities and make special provision for them where required.

Implementation Route Map 2023

• We have introduced regulation of short-term lets through a licensing scheme that is now operational and requires short-term let hosts to obtain a licence before they accept bookings and receive guests. To obtain a licence, hosts must comply with mandatory conditions (that apply to all short-term lets in Scotland) and any additional conditions imposed by local authorities in response to local needs and concerns. This provides assurance to guests that all short-term lets meet consistent safety standards.
• Powers for local authorities to introduce short-term let control areas in order to manage the number of short-term lets in their area. Edinburgh Council designated the whole of the council as a control area on 5 September 2022. From the point of designation it means a change of use to a short-term let is a material change and will always require planning permission.

Licensing schemes opened in October 2022 and new hosts must now obtain a licence before accepting bookings or receiving guests. Hosts who used their accommodation for short-term lets prior to October 2022 were given an extension to apply. Licence applications were required to be submitted before 1 October 2023 to qualify to continue operating while the application was determined. This extension recognised the difficulties hosts, particularly in rural and island areas, were experiencing securing contractors to carry out necessary work.

The Minister for Housing wrote to the Local Government Housing and Planning Committee in January 2024 to share progress to date and we will formally update Parliament on licensing implementation by summer 2024.

Commitment 4.3 Explore how the Rural and Islands Housing Fund might be adapted in the future to expand the range of options to support housing development in remote and island communities.

Commitment fulfilled – This commitment was fulfilled in 2021. Please see the National Island Plan 2021 Annual Report for further details.

Commitment 4.4 Continue to provide grants to crofters to build and improve croft houses.

Commitment fulfilled – This commitment was fulfilled in 2020. Please see the National Islands Plan Annual Report 2020 for further details.

Commitment 4.5 Make best use of all housing stock including derelict properties and options for compulsory purchase.

Implementation Route Map 2023

• Through Housing to 2040 we have committed to take a range of actions to help bring empty homes back into use. The first is to undertake an audit to inform how we deliver the other actions. We have therefore commissioned independent research about the scale, characteristics and location of empty homes, and the effectiveness of interventions to bring them back into use. We intend to publish the report findings later this year and set out our response, including actions. We also continue to support and fund the Scottish Empty Homes Partnership which has helped bring over 8,000 empty homes back into use since 2010.
• In April 2023 we launched a consultation on proposals to increase council tax on second and long-term empty homes. The consultation runs until 11 July 2023 and proposes that new powers are introduced to allow councils to charge up to a 100% council tax premium on second homes from April 2024.

The Scottish Government published its Rural and Island Housing Action Plan in October 2023. The plan identifies the need to make best use of existing homes and highlights actions and potential tools to achieve this goal. Measures include bringing forward secondary legislation to enable councils to apply up to a 100% premium on council tax rates for second homes from April 2024, continuing to work with local authorities to monitor the designation of short-term let control areas and working with the Scottish Empty Homes Partnership, local authorities, and owners to bring more empty homes in rural and island areas back into use.

Local authorities already have broad compulsory purchase powers that can be used for a wide variety of purposes, including bringing derelict properties back into use. In our Programme for Government, we have committed to reform and modernise compulsory purchase legislation to make the system fairer, faster, and more effective. Work will begin in 2024, starting with the establishment of an expert advisory group to help inform the development of options for reform.

Commitment 4.6 Improve access to homes for people looking to settle in, or return to, island communities. In collaboration with local authorities and relevant stakeholders, we will examine the full range of options to do this, making best use of our existing homes and new supply.

Implementation Route Map 2023

• We have committed to delivering 110,000 affordable homes by 2032, of which 70% will be for social rent, and 10% in remote, rural and island communities.
• In recognition of the challenges with recruiting and retaining staff in remote, rural and island communities we will make up to £25 million available from our affordable housing supply programme budget over the period 2023-2028. The funding will support local authorities and registered social landlords to purchase existing suitable properties which can be rented directly or leased to employers to provide affordable homes for key workers.
• In June 2023, we will publish a Remote, Rural & Islands Housing Action Plan to meet the housing needs of, and retain and attract people to, those communities.

Housing is vital for island communities, helping them thrive, retain young people, and support businesses and services to attract employees. The Scottish Government remains focused on our target to deliver 110,000 affordable homes of which 10% will be in rural and island areas.

The Rural and Islands Housing Action Plan recognises the need for employers to be able to attract key workers they require, not only to support service delivery but also to support economic growth and prosperity.

The Action Plan includes a commitment to make up to £25 million available, from the Affordable Housing Supply Programme budget, on a demand-led basis from 2023-2028. This will be delivered in the form of the Rural Affordable Homes for Key Workers Fund and will enable local authorities and registered social landlords to purchase properties, including empty homes for key workers who need affordable housing where there is identified need.

Between 2016-17 and 2022-23, through the wider Affordable Housing Supply Programme, over 10,000 affordable homes have been supported across rural and island areas, of which more than 1,100 have been delivered in island communities.

Islands Programme – Tobermory Worker Accommodation Project

In the 2023-24 Islands Programme round, we granted £700,000 to Argyll and Bute Council for site infrastructure on the Isle of Mull for the construction of accommodation for workers. The project will make a significant contribution to meeting the place- based priorities of the local community, that will in turn accelerate local growth and resilience.

Commitment 4.7 Ensure that the impact on Gaelic-speaking communities is considered as housing policies are developed.

Implementation Route Map 2023

• It is expected that Local Housing Strategies will evidence how the development of outcomes have been influenced by community engagement and consultation to deliver national priorities, plans and targets, and how the Place Principle is being used to deliver change within communities and achieve desired outcomes.

The Local Housing Strategy guidance includes a strong focus on equalities and all local authorities are required to prepare an Equalities Impact Assessment to support the development of local housing strategies to help inform priorities and outcomes.

The Scottish Languages Bill will provide local authorities with the ability to designate Areas of Linguistic Significance within the authority area. These Areas of Linguistic Significance are expected to work closely with the Gaelic Strategy and Gaelic Standards once they have been developed. There is the potential for those that develop housing policies to give consideration to measures aimed to support Gaelic speakers and promote Gaelic in their area.