Orkney Islands Council welcomes Scottish Government funding for St Rognvald House repurposing project

Orkney Islands Council has welcomed confirmation that it has been awarded funding through the Scottish Government's Islands Programme Capital Funding Scheme to support the repurposing of St Rognvald House in Kirkwall. 

The funding represents a significant investment in addressing workforce accommodation challenges in Orkney and will help transform the former care home into  temporary accommodation for essential workers – predominantly social care staff in Orkney Health and Care.  

Thirteen projects across 12 islands will share in the Scottish Government’s £3 million 2026-27 Islands Programme Fund and help retain and attract people to live and work.  

This delivers on the visions and objectives of the National Islands Plan, published in February.  

St Rognvald House is due to become vacant following the move of residents to the new Kirkjuvagr House care facility.  

The Council's proposals will see the building refurbished and adapted to provide accommodation for visiting agency staff who play a vital role in delivering services across the county. 

Current plans would see the building provide accommodation for up to 39 people through a mix of ensuite and shared facilities, alongside communal kitchens, dining areas, laundry facilities and social spaces. The accommodation would offer a temporary base for workers while helping to reduce pressure on the private rented housing market. 

The project supports the ambitions set out in the Council's Essential Workers Housing Strategy, which identified a need for a broader range of housing options for essential workers and key staff. It will also make productive use of an existing Council asset ahead of the site's longer-term redevelopment for affordable housing. 

The project will help improve recruitment and retention while reducing the substantial costs currently associated with providing accommodation for agency and temporary workers. Recent analysis has shown that accommodation costs for agency workers within Orkney Health and Care alone amount to around £750,000 per year.  

Following a visit to St Rognvald’s House today Health Secretary Angela Constance said: 

“It was great to visit St Rognvald’s House today and hear about the exciting plans to repurpose the care home as accommodation for health and social care workers and move residents to the brand new Kirkjuvar House when work is complete.  

“The funding announced today by the First Minister includes over £200,000 for this project which will also help release private rental properties back to the housing market for permanent Orkney residents and families. 

“I am acutely aware that access to housing and accommodation can be a barrier in attracting workers to Orkney and our National Islands Plan puts an emphasis on population retention and attraction.” 

Council Leader, Councillor Heather Woodbridge, said: 

"We are delighted that the Scottish Government has recognised the importance of this project through the award of Islands Programme Capital Funding. 

"Like many island communities, Orkney continues to face significant challenges in recruiting and retaining staff across a range of essential public services, and the availability of suitable accommodation is frequently identified as a barrier. 

"This investment will allow us to make effective use of an existing Council building, providing much-needed temporary accommodation for key workers while helping to ease pressure on local housing supply. 

"The project demonstrates how we can take an innovative approach to supporting our workforce, strengthening service delivery and ensuring our communities continue to receive the services they rely on. We are grateful to the Scottish Government for their support and look forward to progressing the development." 

The Council will now move forward with the next stages of project development, including final design work and delivery planning, with refurbishment work expected to begin following completion of the necessary approvals. 

St Rognvald House has been identified within the Council's Strategic Housing Investment Plan for future redevelopment into permanent affordable housing. The repurposing project will ensure the building continues to provide value to the community in the intervening period while supporting Orkney's workforce and public services.