Housing Market Partnership

Quarterly Update – June 2026

Laura Baillie
Team Manager (Housing Strategy, Development and Data)
Education, Communities and Housing

IMAGE: Title slide for the Housing Market Partnership Quarterly Update – June 2026, presented by Laura Baillie, Team Manager (Housing Strategy, Development and Data), Education, Communities and Housing.

The Local Housing Strategy

• More Homes
• Quality Warm Homes
• Access and Choice of Housing for All
• Monitoring and Review

IMAGE: Diagram of the Local Housing Strategy showing “More Homes” as the top element, “Quality Warm Homes” and “Access and Choice of Housing for All” as the two central elements, and “Monitoring and Review” as the foundation.

Housing Market update

Housing Market Drivers

• NEW - 2022 household projections now published (based off census)
• Shows similar trends if not slight increase projected growth in number of households (vs 2018 based)
• Household Projections – main evidence base for the Housing Need and Demand Assessment (HNDA)
• Therefore – main driver for new housing supply, and the strategy required remains the same

IMAGE: Line chart titled “2018 vs 2022 based household projections”. It compares 2018-based and 2022-based household projections for 2022, 2027, 2032, 2037, 2042 and 2047. Both projections rise overall; the 2022-based projection is slightly higher from 2027 onwards. The vertical axis ranges from 10,200 to 11,600 households.

Housing Market update

Housing Market Performance – House Prices

• Fluctuations due to small numbers but average January to March 2026 vs 2025
• Orkney continues to have higher house prices than Scotland, other island LAs, and Highlands and Moray
• Orkney £223k vs Scotland £187k (+£36k)
• More affordable housing supply needed including low-cost home ownership

Average house prices over Jan–March

Example - February 2026 house prices
Orkney 18% increase on 2025

https://www.gov.uk/government/collections/uk-house-price-index-reports-2026

IMAGE: Map titled “Average price by local authority for Scotland”, showing average house prices in thousands of pounds by local authority. The legend ranges from “less than 70” to “230 or greater”; Orkney is in the “210 to 229” category.

Housing Market update

The cost of new affordable housing development

• Building new affordable housing in Orkney often costs more than market value.
• Costs are higher, but average cost of building in Orkney is also higher than expected, when compared to averages from the Scottish Social Tender Housing Price Index.
• Costs are higher due to logistics, supply chain, market structure/competition. Vary by site.
• Local Housing Strategy objectives
  – Value for money / lower costs so can spread grant further and get more affordable houses built for the available grant.
• OIC Guidance Note issued in January 2026 provided design guidance in relation to size and cost standards for SHIP projects.

Source: Scottish Government More Homes

IMAGE: Table comparing average construction costs for a three-person equivalent home as at March 2026: £190,484 for the Scotland average, £203,817 for expected Orkney costs, and £250,000 for actual Orkney costs.

More Homes – Delivery

End of year 2025/26

Affordable Housing Supply Programme

• 74 approvals
• 58 site starts
• 40 completions

Key worker Fund

• 2 approvals
• 2 site starts
• 7 completions

IMAGE: Slide summarising end-of-year 2025/26 delivery. The Affordable Housing Supply Programme recorded 74 approvals, 58 site starts and 40 completions. The Key worker Fund recorded 2 approvals, 2 site starts and 7 completions.

More Homes – Record Investment

End of year 2025/26

• First time in more than 10 years that Orkney has exceeded its annual Scottish Government funding allocation.
• Demonstrates strong project delivery and confidence in Orkney's housing programme.

IMAGE: Investment summary showing a Resource Planning Assumption of £4.068 million, actual spend of £6.57 million, a difference of £2.502 million, and a 61% increase in spend.

More Homes – achievements / ongoing

ORKNEY ISLANDS COUNCIL

• Walliwall 9a – 6 units for social rent completed
• Cairston Road, Stromness – 8 family homes for social rent; 2 homes completed, remaning 6 due for completion shortly.
• Moar Drive (4 persons) accessible independent living: site start expected beginning July.
• Coplands Road Stromness- 25 homes for Social rent; contract awarded, planning applications submitted.
• Dounby Site – Design and pre-planning work underway for a mixed housing development, including social rented homes and serviced self-build plots.
• Houton – SSEN/OIC initiative to service site for eventual permanent housing
• St Rognvald’s house - Project progressing to provide accommodation for agency staff – Islands Programme funding submission.
• Former Papdale Halls – Demolition project progressing, with procurement underway.

IMAGE: Slide listing Orkney Islands Council housing projects, including completed social-rent homes at Walliwall 9a, ongoing work at Cairston Road and planned or progressing projects at Moar Drive, Coplands Road, Dounby, Houton, St Rognvald’s House and Former Papdale Halls.

More Homes – Achievements / ongoing

Orkney Housing Association Ltd

• Walliwall 9a – 8 shared equity – complete
• Walliwall 10 – 41 mixed tenure homes under construction, with phased completion through to 2027/28
• Toab, St Mary's and Burray – Design team appointed. Planning applications programmed for Autumn 2026, with current delivery programmes remaining achievable
• Off-the-shelf acquisitions – 5 homes acquired during 2025/26, with additional acquisitions anticipated during 2026/27.

IMAGE: Slide listing Orkney Housing Association Ltd projects: 8 completed shared-equity homes at Walliwall 9a; 41 mixed-tenure homes under construction at Walliwall 10; planned applications for Toab, St Mary's and Burray; and five off-the-shelf acquisitions during 2025/26.

More Homes – Achievements / ongoing

Places for People Scotland

• Early work on due diligence on former Papdale Halls and Weyland sites

Development Trusts

• Since 2019 Isles Development Trusts have completed 14 affordable units across seven islands
• Six development trust projects currently on site across North Ronaldsay, Papa Westray, Westray, Eday, Rousay and Shapinsay, providing ten additional homes for island communities

IMAGE: Slide describing early due-diligence work by Places for People Scotland and development-trust activity, including 14 affordable units completed across seven islands since 2019 and six current projects providing ten additional homes.

More Homes - Achievements

Empty Homes – Increasing supply

• 11 became private lets, 8 became owner-occupied homes, 4 became short-term lets
• Wider context of 123 homes brought back into use since 2017/18

IMAGE: Two bar charts about empty homes. “Increasing homes brought back into use” shows 14 homes in 2023/24, 16 in 2024/25 and 23 in 2025/26. “How long were homes empty?” shows 4 homes empty for 1–2 years, 10 for 3–5 years, 5 for 6–10 years and 4 for over 10 years.

More Homes

Empty Homes – What’s next

• Funding secured for full- time Empty Homes Officer (previously part time)
• Council’s Empty homes Loan Scheme launched
• £25k per property to bring up to the Repairing Standard (owners can add own funds too)
• Let to essential workers
• Further publicity to follow soon

IMAGE: Slide outlining next steps for empty homes, including funding for a full-time Empty Homes Officer, launch of the Council’s Empty Homes Loan Scheme, loans of £25,000 per property to reach the Repairing Standard, letting properties to essential workers, and further publicity.

More Homes

Strategic Housing Investment Plan – 2027 onwards

• The SHIP determines what affordable housing funding goes where
• Considered/approved by Education, Communities and Housing Committee in September
• Consultation / Call for proposals – 22nd June
• Meetings with affordable housing providers from 29th June
• Drafting SHIP during July
• Further information see https://www.orkney.gov.uk/our-services/housing/housing-market-partnership/

IMAGE: Slide listing the Strategic Housing Investment Plan timetable: consultation and call for proposals on 22nd June, meetings with affordable housing providers from 29th June, drafting during July, and consideration or approval by the Education, Communities and Housing Committee in September.

More Homes

Strategic Housing Investment Plan – 2027 onwards

How proposals will be assessed

• Spread across Housing Market Areas
• Green
• Amber
• Red
• Not for inclusion

IMAGE: Map of Orkney showing Housing Market Areas. The legend identifies Kirkwall, Stromness, West Mainland, East Mainland & Linked South Isles, and The Isles. Proposals are assessed using the categories Green, Amber, Red, or Not for inclusion.

Quality Warm Homes

Fuel Poverty in Orkney

• Survey period covered 2022–2024
• This included the peak of the UK household energy price crisis
• Results are based on a relatively small Orkney sample
• The figures highlight fuel poverty as a major issue in Orkney and should be read in context

IMAGE: Table comparing fuel poverty. In Orkney, 51% of households were in fuel poverty and 34% were in extreme fuel poverty; the corresponding figures for Scotland were 31% and 17%.

Quality Warm Homes

What Influences Fuel Poverty

• Factors we cannot control
  • Energy prices – reliance on electricity and no mains gas
  • Orkney’s climate and exposure
• Areas where local partners can help
  • Housing quality -
  • Across tenure - EPC D most common rating
  • BUT one third of houses are E, F or G, more common in older houses
  • Higher concentrations of lower-performing homes are evident in parts of the Isles
  • Energy efficiency – OIC EESSH: 94.64%, OHAL EESSH: 100%
  • Access to funding
  • Advice and support
  • Better targeting of assistance / cost of living / household income
• Focus local resources on the areas where they can make the greatest impact.
  • Discussion with THAW at later HMP

IMAGE: Slide identifying factors influencing fuel poverty. Factors outside local control are energy prices, reliance on electricity and the lack of mains gas, and Orkney’s climate and exposure. Local partners can help with housing quality, energy efficiency, funding, advice, support, and better targeting of assistance. It states that OIC EESSH is 94.64% and OHAL EESSH is 100%.

Quality Warm Homes

Looking ahead

HEES: ABS programme – private sector housing

• £1.97m secured during 2025/26
• Programme nearing completion at end June 2026
• Projected 127 households supported
• Projected 199 energy efficiency measures installed

Looking Ahead

• Better use of EPC and local housing data
• Target lower-performing homes
• Focus support where it can have the greatest impact
• OIC Stock Condition Survey commencing during 2026/27
• Updated evidence to inform future investment in Council housing
• Better information will help target future investment and support more effectively.

IMAGE: Slide summarising the HEES: ABS programme and future priorities. The programme secured £1.97 million, is nearing completion at the end of June 2026, and is projected to support 127 households and install 199 energy-efficiency measures. Future work includes better use of EPC and local housing data, targeting lower-performing homes, and an OIC Stock Condition Survey during 2026/27.

Access and Choice of Housing

Housing Register Trends

• The reduction in housing register numbers does not necessarily represent a comparable reduction in housing need. The peak in 2023/24 was influenced by issues with the rolling review process, resulting in applications remaining on the register for longer than intended. Following a review and cleansing exercise, the current figures provide a more accurate reflection of demand.

IMAGE: Bar chart titled “Number on Waiting List”. The figures are approximately 900 in 2021/22, 1,080 in 2022/23, 1,440 in 2023/24, 1,140 in 2024/25 and 750 in 2025/26. The chart shows a peak in 2023/24 followed by a decline.

Access and Choice of Housing

Homelessness Presentations and Duty Owed

• Homelessness presentations have continued to increase, placing additional pressure on housing and support services

IMAGE: Grouped bar chart titled “Duty Towards at 31st March 2026 and Presentations for the whole year 2025/2026”. The number of duties and presentations are shown for each year: 2021/22, 2022/23, 2023/24, 2024/25 and 2025/26. Duties are approximately 55, 87, 101, 91 and 108; presentations are approximately 132, 142, 144, 113 and 161.

Access and Choice of Housing

Lets to Homeless Households

• A significant proportion of lets are allocated to homeless households

IMAGE: Grouped bar chart titled “Number of lets to Homeless Applicants”. OIC and OHAL figures are shown for each year. OIC figures are 73, 41, 51, 46 and 48 for 2021/22 through 2025/26. OHAL figures are 23, 18, 20, 14 and 29.

Access and Choice of Housing

Time Spent in Temporary Accommodation

• The average time spent in temporary accommodation has increased by 80% since 2021/22, reflecting growing pressures on housing supply and increasing difficulties in securing permanent accommodation.

IMAGE: Line chart titled “Average length of time (days) in temporary accommodation.” The average is approximately 190 days in 2021/22, 188 days in 2022/23, 207 days in 2023/24, 280 days in 2024/25 and 340 days in 2025/26, showing a substantial overall increase.

Access and Choice of Housing

Current Homelessness Position

• 129 households awaiting permanent accommodation
• 12 homelessness applications awaiting assessment
• 92 in temporary accommodation includes B&B and self-catering
• 12 staying with family or friends / homeless at home
• 14 awaiting temporary accommodation placements.
• The housing crisis is no longer affecting only those traditionally considered most vulnerable. Rising house prices, limited private rented accommodation and a shortage of affordable homes mean increasing numbers of working households and older people are now seeking assistance through homelessness services.

IMAGE: Slide summarising the current homelessness position: 129 households are awaiting permanent accommodation, 12 homelessness applications are awaiting assessment, 92 households are in temporary accommodation including B&B and self-catering, 12 are staying with family or friends or are homeless at home, and 14 are awaiting temporary accommodation placements.