Milestone reached for Papdale Halls of Residence Demolition

Plans to demolish the former Papdale Halls of Residence building in Kirkwall have reached a key milestone this week with Elected Members approving the award of a contract for the demolition.   

Further information on the details of the contract - including the successful bidder - will be released in due course.  

In 2025, the Council approved the outline business case to demolish the buildings, with work taking place since then to carry out a comprehensive programme of surveys, investigations and procurement process.  Building warrant and planning permissions for the demolition are also now in place. 

The works on site will get underway during January next year, with completion expected by Spring 2028.  

Demolition of the building, which has been largely empty since 2013 other than a section used for a nursery setting, will enable the future provision of housing  in the centre of Kirkwall.  

The Council’s Local Housing Strategy (2024) sets an ambitious target of 1,030 new homes over ten years, with a 60/40 split between affordable and private housing. Meeting this goal requires innovation, collaboration and finance with the target set to be delivered through a combination of the Council, Orkney Housing Association Limited (OHAL), Places for People Scotland, and Development Trusts, alongside private sector developers. 

The Council entered a landmark partnership in December 2025 with Places for People (PfP) Scotland to deliver up to 500 new homes over the next decade – becoming the first national housing association to build in the islands. 

It is anticipated that up to 60 affordable homes could be built on the site by Places for People Scotland, with the sale of the site subject to separate commercial and legal processes. The development of future housing would also be subject to a separate planning process.  

Councillor Sandy Cowie, Chair of the Council’s Policy and Resources Committee, said: "Today's decision marks another important step in tackling the housing challenges facing Orkney. The former Papdale Halls has stood largely empty for more than a decade and, while demolition is a significant investment, it will unlock a strategically important site in the heart of Kirkwall for future housing development. 

"Providing more homes remains one of the Council's highest priorities. We know the shortage of affordable housing affects families, young people, essential workers and businesses across our islands, and increasing housing supply is essential if we are to support strong, sustainable communities and a growing economy. 

"By approving the demolition, we are removing a long-standing vacant building and preparing the way for the potential development of up to 60 affordable homes through our partnership with Places for People Scotland. While further legal, commercial and planning processes will be required before any housing development can proceed, this decision demonstrates the Council's commitment to working with partners to increase the availability of much-needed homes in Orkney.”