Empty homes

If you own a home in Orkney that has been empty for at least 12 months, you may be able to apply for an Empty Homes Loan, from the Council, to help pay for repairs or renovation.

The Council can lend up to £25,000 for each property. The loan is secured on the property and must be repaid monthly, with interest, within a maximum of 5 years.

The work must bring the whole property up to the legal Repairing Standard which is defined by the Housing (Scotland) Act 2006. If the work costs more than the loan, you will need to pay the difference.

You may be considered if you own the property and agree to the repair, repayment, legal requirements, letting and monitoring conditions.

The Council will normally use Council Tax records to check that the home has been empty for at least 12 months. The Empty Homes Officer may ask for other evidence if needed.

Priority for a Council Loan is given to one- and two-bedroom homes in Kirkwall and Stromness. Other sizes and locations may be considered case by case, so please ask the Empty Homes Officer.

There are legal conditions for use of the property for 10 years after completion of the works.

For the first five years after the works are complete, you must make the home available for private rent and priority must be given to an eligible essential worker – please see the list of essential workers below. 

During years 6 to 10, the property can continue to be rented to an essential worker, OR you or a member of your family may live there, but it must be that person's only or main home. 

The Empty Homes Officer will explain the scheme, arrange an inspection and help you understand which work may be eligible. The officer can also give advice about landlord requirements and finding a tenant who is an essential worker.

• The whole property must meet the Repairing Standard when the work is finished.
• The Council will register a Standard Security over the property.
• The work should normally be completed within 2 years.
• The Council's conditions apply for the first 5 years after completion.
• Statutory conditions apply for 10 years after completion.
• If the conditions are broken, the remaining loan may have to be repaid in full.

• Contact the Empty Homes Officer (details below). The officer will explain the scheme and carry out an initial check.
• The Council will check how long the property has been empty and consider its location and size.
• The Empty Homes Officer and a Building Inspector will visit the property and discuss the work needed.
• If the property and proposed work appear suitable, the Council will send you an application form and a written list of work that may be eligible.
• Get at least two itemised quotations and gather the other information needed for your application.
• Send the completed application and supporting information to the Council.
• The Council will then assess the application. If it is approved, you will receive a written loan offer.

Along with your completed application form, you will need to provide:

• At least two itemised quotations. Labour and materials must be shown separately, and eligible and ineligible work must be separated in the quotations.
• Evidence showing how all the work needed to meet the Repairing Standard will be paid for, including any amount above the Council loan.
• The monthly rent you plan to charge when the home is ready to make sure it is an affordable rent.
• Other information required for the Council to assess the loan.
• If you have borrowing secured on the property, a recent Home Report should be provided , so the Council can check that there is enough equity in the property.

The Council aims to process an application within 30 days from receipt of the completed form and all the information it needs.

The Council will register a Standard Security over the property. You must get your own independent legal advice. The Council's security does not have to rank first, but the legal arrangements must be acceptable to the Council and your solicitor.

No. If work starts before the Council has made a formal offer and you have accepted it, no loan will be provided.

The loan will be paid in agreed instalments as the work progresses. You will need to provide invoices, and the work will be inspected before payments are released.

At least 20% of the loan will be held back until the final inspection confirms that the property meets the Repairing Standard.

• Interest is charged and your offer will show the interest rate, monthly repayment and total amount to repay.
• A Council arrangement fee of £180 will be deducted from the first instalment.
• Land Register recording fees of £80 each will be deducted from the first instalment.
• Approved professional costs, including your solicitor's fees and a Home Report if needed, may be included within the £25,000 maximum loan.

The Empty Homes Officer and Building Inspector will decide which work may be supported. It must help bring the property up to the Repairing Standard.

Examples of work that may be eligible include:

• Fire, smoke and carbon monoxide alarms.
• Electrical rewiring and a suitable consumer unit.
• Repairs or replacement to defective windows and external doors.
• A suitable fixed heating system.
• Treatment of dampness or rot, supported by a specialist survey.
• Repairs to defective roofs, rooflights, gutters, downpipes or chimneys.
• Repairs to defective floors, plasterwork, internal doors, stairs and access.
• Work to make the garden or surrounding area safe.
• Insulation or other energy-efficiency work where this is part of meeting the Repairing Standard.
• HMO work where it is part of the wider work needed to meet the Repairing Standard.

The conversion of an office or other non-residential property into a home may also be considered case by case. Please discuss this with the Empty Homes Officer before applying.

• Floor coverings such as carpets or vinyl.
• Redecoration.
• A replacement kitchen or bathroom, unless the property has never had one.
• Common repairs e.g. common roof repairs, or repairs to common stairs. These should be completed before an Empty Homes Loan is provided.
• Energy-efficiency or work on a House in Multiple Occupation, where it is not part of meeting the Repairing Standard.

If you carry out eligible work yourself, only the cost of materials can be considered. Your own labour cannot be included as part of the costs.

When the work is finished, the home must be safe, wind- and water-tight and reasonably fit to live in. This includes, where relevant:

• A stable structure and no serious damp.
• Safe water, drainage, sanitation, electricity, gas and other fuel supplies.
• Working fixed heating and hot water.
• Safe doors, windows, roofs, gutters, external pipes and common access areas.
• Suitable fire, smoke and carbon monoxide alarms.
• Suitable lighting, ventilation, insulation, cooking, food-storage and washing facilities.
• Safe fixtures, fittings, appliances and furnishings supplied by the landlord.

The Council will confirm the work needed after inspecting the property. The final payment will not be released until the Council confirms that the Repairing Standard has been met.

For the first 5 years after the Council confirms completion, you must:

• Make the property available for private rent.
• Be registered as a private landlord and follow private landlord registration requirements.
• Use a Private Residential Tenancy.
• Give priority to an eligible essential worker (see below).
• Charge an affordable rent and carry out an affordability assessment.
• Keep the property in good repair.
• Provide the monitoring information requested by the Council.

As a guide, rent is normally affordable when it is no more than 30% of the tenant household's net income. As an indicative guide, Orkney median incomes are around gross £34,000 per annum (2023 Housing Needs and Demand Assessment) and most households on median incomes should be able to afford up to around £600 per month for a 2-bedroom property. You must tell the Council the rent you plan to charge.

Priority is given in the following order:

• Social care workers employed by the Council or an agency providing services for the Council.
• Council staff delivering essential public services.
• NHS Orkney staff and agency workers providing health services for NHS Orkney.
• Other employees or contractors delivering essential public services.
• Construction workers.
• Hospitality workers.
• Other workers whose work is essential to Orkney's communities and economy.

Preference is given to permanent jobs or fixed-term contracts of more than one year.

An essential worker may be an existing Orkney resident, and a new, incoming Orkney resident may be considered once their employment contract is confirmed.

The Council may be able to help you look for a tenant but finding one remains your responsibility. If you cannot find a suitable essential worker within 8 weeks after the home becomes available, you may look for another tenant. The affordability rules still apply.

When the home is let, you must provide evidence of the tenant's essential-worker status, the monthly rent and confirmation that an affordability check was completed. The Council will ask for monitoring information every year.

The property must continue to be used as a private home and kept in good repair. It may continue to be rented, or you or a family member may live there as your only or main home. The Council may ask you to confirm that the conditions are being followed.

You can appeal in writing and explain why you think the decision should be reconsidered. The Director of Education, Communities and Housing will consider the appeal. Complaints are handled under the Council's Corporate Complaints Policy.