LOCAL IMPACT OF NATIONAL EMERGENCY
SIÂN SWINTON
TIG price increases
Tighean Innse Gall were forced to roll back an unexpected price hike on their Rent to Buy homes
in Lochmaddy, according to potential buyers.
The buyers were informed of the price rise, which amounted to a few hundred pounds per month,
via email and say that there was no indication of why the price had increased so much, but that
they were aware of another valuation being conducted on the homes.
After coming under fire for the decision to increase the price so late on in the process TIG were
forced to roll back to their original price but, still, at least one of the potential tenants has secured
housing elsewhere and another considered legal action.
TIG were unable “to talk about individual cases as it would breach GDPR” but were able to give
information on the Rent to Buy scheme in general.
“TIG is placed under financial constraint from our Bank and the Scottish Government funding
rules and guidance insist that if any of the assumptions change (eg an increase in the market
value) then the rent to buy purchase agreement should reflect that.”
The Rent to Buy scheme is intended to provide low cost home ownership to those who would
otherwise be unable to get on the property ladder. The scheme sees the potential buyer/tenant
sign a Rent to Buy Purchase Agreement and pay a monthly rent, part of which will become the
10% deposit after the tenant has been in the property for five years. At the end of the five year
period the tenant must apply for a mortgage and buy the property.
When asked what would happen if the tenant was unable to secure a mortgage and buy at the
end of the tenancy period, TIG said: “The Rent to Buy Purchase Agreement is the formal contract,
and tenants must purchase at the end of the 5-year tenancy.”
National crisis, local strategy
The Scottish Government declared a national housing emergency in May. Rent to Buy is one
solution to a much wider housing crisis affecting the whole of Scotland but very acutely felt in
Uist.
According to estate agents, housing developers and the Comhairle soaring prices, changing
legislation and a lack of appropriate land to build on are just some of the causes of our shortage
in housing.
Over the festive period the Comhairle conducted a survey on its next Local Housing Strategy
(LHS). The survey was open for six weeks over Christmas and New Year and attracted just 41
responses from the Southern Isles.
The survey highlighted that issues such as low housing supply, population decline, fuel poverty
and cost of building materials were of great concern to respondents.
Representatives from the Comhairle held consultation meetings in Uist in early May to hear from
those involved in various community groups including community councils, churches and housing
action groups.
At least two areas of land in South Uist have been offered to Hebridean Housing Partnership as
development areas, including a site in Daliburgh that has planning permission and a building
warrant secured, but have been rejected according to the landowners.
Donna Young of Rural Housing Scotland spoke about the community led housing work being
done in other areas of Scotland such as Orkney and how their success could be translated into
projects in Uist (more from Donna in this month’s editorial).
However, those present were concerned about the responsibility of such projects resting with
those who are already volunteers on many other community groups and committees and simply
would not have the time to devote to such an ambitious and important project.
During the consultation meetings in the Council Office in Balivanich representatives from local
groups voiced their concerns about the affordability of homes and questioned how a new housing
strategy would consider concerns outside of, but related to, housing such as local infrastructure
and job security.
No rentals and soaring valuations
Colin Shaw, of Benbecula-based Uist Property, told Am Pàipear that they have seen many people
being offered jobs and looking to move to Uist but have been unable to secure housing either
through the prices being too high or a lack of rental properties. Uist Property look after many
rental properties but have not had new tenants in over a year as new rental properties are not
becoming available.
Portree-based FMS Law estate agents told of their concerns regarding the Private Residential
Tenancies legislation which increases rights for tenants and puts an end to the Short Assured
Tenancy options that FMS claimed had been popular in Skye. These tenancies would allow those
who run short-term lets in the Summer to let out the property for up to six months over the Winter.
FMS claimed that these types of short tenancies allowed people to secure housing, however, Uist
Property said they would not entertain such temporary tenancies as they are not a solution to the
housing problems Uist faces.
Those in the property business have said that demand for properties has fallen but prices are still
far too high. Many valuations have been undertaken by surveyors from the mainland who are
working six months behind, according to Uist Property.
“The bubble has to burst at some point.” Said a spokesperson from FMS.
Katie Walker of HHP has encouraged anyone who has considered putting their name on the
waiting list to do so in order to more accurately reflect the demand for housing in Uist. The HHP
waiting list is currently not very long and this data has been used to determine future housing
need by the Comhairle.
The Housing Need and Demand Assessment undertaken by the Comhairle determined that
extrapolating the current figures would show that by 2030 no one would be left on the waiting list.
However, those at the community consultation meetings pointed out that these figures are a self-
fulfilling prophecy – no new homes built means no new families able to live in them and means further population decline.
The Uist Economic Task Force met in May for the first time in two years and discussed the topic
of housing at the meeting. Paul Steele is the current chair and told Lochboisdale Community
Council of the many projects and groups being organised through the Task Force.
Uist and Barra Housing Group has been in the process of organising meetings and has assured
Am Pàipear that actions and projects are in the pipeline to address these local housing issues.
NEW STOVE BAN REGULATIONS FAIL TO DELIVER CLARITY
Scottish Government’s introduction of a New Build Heat Standard has been met with widespread alarm and considerable confusion.
The new regulations apply to new build projects applying for warrant after April 1st and do not pertain to stove installations in existing properties.
A month after coming into force, the full detail of the new regulations is still being unpicked.
Hopes of a get-out clause for the use of solid fuel as an ‘emergency heating’ were dashed when the guidance clarified there would be no such justification in domestic properties.
The Comhairle has confirmed that as things stand, they will have no option but to reject applications that include stoves as an emergency heating source.
The new regulations pertain to building warrants for new build projects, and not to changes made after warrant has been secured. It is not clear what regulation would prohibit the retro-fitting of a solid fuel stove after a house has been signed off.
Cllr. Paul Steele, Leader of Comhairle nan Eilean Siar has written to Scottish Government seeking urgent clarification:
“The definitions within the amendments to the Building (Scotland) Regulations 2004 are confused and confusing. This looks, once again, like an urban style policy being foisted onto island communities without proper consideration of island circumstances. The Comhairle will continue to engage with Government to make the case for island-proofing and to ensure an approach that does not disadvantage islanders.”
The Comhairle has confirmed that of the 20 new build homes in Uist granted warrant last year, the vast majority used Air Source Heat Pumps as the primary source of heating, with around 70% incorporating solid fuel stove as part of the mix.
Senna Volbeda Richardson has moved back to North Uist with her family and is building a new home:
“We managed to get a stove before the ban, however, we would still have tried it on the basis that it is necessary here in the islands. Last year we had a long power cut and our current house only had electric heating and a cooker, so with a young child at the time, we had to live elsewhere until the power came back on.”
The regulation changes were subject to ‘island proofing’ with an Island Communities Impact Assessment; the document covers everything from fuel poverty to supply chain concerns but fails to provide any mention whatsoever of the word ‘peat’.
Labour’s Western Isles Westminster candidate Torcuil Crichton said: “This is another example of policy-making from the warmth of Edinburgh offices with complete ignorance of cold comfort it will mean for people building or converting island homes.”
“Left to stand these regulations will in time mean goodbye to the peat-burning stove and effectively outlaw the tradition of peat-cutting. You only cut peats for one reason – to burn them in your stove and under these regulations having a solid fuel stove in a new house will be against the law.”
The loss of solid fuel stoves will have particular impact in the Western Isles, where, with more than half of residents living in fuel poverty, peat is seen as a free, or almost free fuel.
Angus (Kyles) MacDonald has operated the machine peat cutting service across Uist for a quarter of a century. He told Am Pàipear that while the numbers have declined over the years, demand is still strong:
“We have 140 regular customers on our list, from Locportain in the north to Eriskay in the south. Fifteen years ago we had around 300, so the decline in numbers is clear. Partly that is down to changing regulations and the drive for so called environmentally friendly energy but for the most part, people are just not willing to put in the hard work required to get the peat turned, dried and home.”
“The new rules won’t stop our work. I’ve been cutting peat since I was ten years of age, I’m certainly not going to stop now. As long as there are customers who want it, we’ll be bringing the machine out and cutting peat for them.”
MINISTER VISITS UIST AMID DEPOPULATION AND HOUSING CONCERNS
SIÂN SWINTON
Minister for Equalities, Migration and Refugees, Emma Roddick, visited Uist in October prior to the release of the new Rural and Islands Housing Action Plan and her own constituent engagement survey.
Kareen MacRury, Uist Settlement Officer, organised a short programme of meetings for the minister including discussing her own work in helping people to move to the islands.
The housing theme carried over to a visit to the Tagsa Uibhist Community Gardens to discuss the recent Our Right to Food report as well as other population related concerns from Tagsa. Tagsa Uibhist CEO, Chris MacLullich, said: “We spoke about the usual challenges: housing, workforce, etc. She also said that there is a fund to convert unused housing to create new housing but this is for local authorities and there doesn’t seem to be any housing stock available for this here.”
Ms Roddick said: “The lack of affordable housing is a key factor driving depopulation. Public services and local businesses are being impacted due to a lack of staff, young people are moving out of their hometowns and taking jobs elsewhere, and ageing populations left behind are struggling to find care and support locally.”
The 2022 Scotland Census shows a 5.6% decrease in population from the previous census in 2011, the biggest percentage decrease in Scotland, and a 2020 report from the Highlands and Islands convention predicts a population loss of 14% between 2016 and 2041.
On 13 October, Housing Minister Paul MacLennan released the new Rural and Islands Housing Action Plan, which sets out how the remote, rural and islands communities of Scotland could benefit from the ScotGov Housing to 2040 plan. The plan sets out to build 110,000 homes across Scotland by 2032 with 10% in remote, rural and island communities.
The scheme takes its definition of ‘remote, rural and island communities’ from Scottish Government’s Urban Rural Classification 2020 guidelines, which describes ‘remote’ as those areas more than a 30 minute drive time of a settlement with a population of 10,000 or more.
Ms Roddick welcomed the plan saying: “The sustainability of our rural and island communities is vital to Scotland’s future, but we are currently seeing significant depopulation and rising house prices in many of these areas. That is why this action plan is so important for sustaining these communities. Providing affordable housing will help protect our rural and island communities, letting people stay where they want to live and continue to thrive.”
There is also a plan to introduce legislation enabling councils to charge a 100% premium on council tax for second homes. In Uist, 169 homes were registered as ‘secondary letting’ under the new Short Term Let regulation.
In the meeting with the minister, Ms MacRury set out the work being delivered under the Uist Repopulation Zone Action Plan, which included liaising with the Uist and Barra Housing Group project and Rural Housing Scotland to address housing concerns. This work will now be taken forward by Christina Morrison, who has taken on the role of Settlement Officer.
The complex issues underpinning Uist’s affordable housing shortfall
The Comhairle is debating how to maximise the value of £16m of as yet unspent Scottish Government affordable housing funds.
The Government’s allocation for the Western Isles for the five-year period up until 2026/27 is £42m, allocated at around £8.5m per year. The Comhairle’s current housing programme plans for a further 100 new houses up to 2026/27, accounting for £26m of that £42m fund, and leaving a balance of around £16m not yet allocated.
Current commitments require the Comhairle to site 55% of all new builds outside of Stornoway to support population growth and retention in the most fragile rural communities, but increased building costs in rural areas has meant that this commitment is now in question.
At a meeting of the Sustainable Development Committee in June, elected members were asked to consider whether to step back from the 55% commitment to ensure the remaining £16m can be fully utilised. The decision was put on hold pending further discussion at an Affordable Homes Seminar for elected members, due to be held this month.
The Government funding is tied into a set of benchmark unit costs, which for Island areas, is currently set at £95k per unit, well below average unit build costs in the Western Isles.
Neither the Comhairle or Hebridean Housing Partnership (HHP) were able to confirm current average unit costs, but both agreed that the Uist figure is well above the Government’s agreed £95k budget.
HHP states that additional freight costs mean island prices have historically been 20-25% higher than on the mainland, and this increases the further you travel from Stornoway. This geographical disadvantage is exacerbated by significant inflation over the last few years, which has led to price increases of around 50% over the last 10 years.
The situation is sorely felt by local contractors. Iain MacInnes, Project Manager at MacInnes Bros Ltd, explains: “The cost increases start before a brick is even laid. Virgin sites just need more preparatory work – access roads, peat clearance, land drainage, independent sewer networks – theses are all costs you wouldn’t need to consider in an urban construction project. Then there is the logistics of managing freight through a sometimes unreliable ferry service. The cost of fuel is an issue – our lorries carrying full load manage about seven miles to the gallon – that’s a lot of fuel to get the materials we need on site. The UK Government changed the rules on the use of red diesel within construction in April of this year, and we are no longer able to use the cheaper fuel alternatives for our work. That decision has cost MIB an additional £20k per month to operate essential construction plant at just our Lochmaddy development site alone. There are additional costs, and additional risks and the contractor is often the one who carries that. It can end up with some projects not being commercially viable.”
Iain is clear that the burden should not hold back development: “Building in rural settings is more difficult and more costly, there’s no denying that, but the value of these projects has to be considered in a wider sense. The cost of a rural build needs to be seen against the wider value it adds to the community and smaller settlements across Uist: the jobs it helps retain, the population it helps to stabilise, the school rolls it helps maintain.”
Rural developments also face additional hurdles in finding suitable land, it can take up to two years and cost as much as £5,000 to free up croft land for development.
MSP Rhoda Grant told Am Paipear: “While it’s their responsibility to ensure adequate good quality housing, the Council and HHP are being placed in a really difficult position. The requirements for Government funding mean that they already exceed their per unit house budget within Stornoway, and by the time they look at building in Barra those prices have tripled. It’s a natural deterrent for island authorities to build in more rural areas as they desperately try to maximise the return for the paltry budgets they’ve been allocated.”
MSP Alasdair Allan believes the issue is directly impacting local communities: “The shortage of affordable housing in Uist is having considerable social and economic impacts. A limited or expensive housing market means that it is harder for islanders to access suitable properties on the open market, making it more likely that they live in accommodation which does not match their needs. As a result, younger people and families may be pushed out of island areas like Uist where they are sorely needed.”
Dena Macloed, Chief Executive of HHP has stated that delivering the housing programme within budget is becoming more difficult: “HHP’s vision is to provide good quality and affordable homes: that vision is challenging to deliver at the best of times but our current economic climate is making it much harder. The cost of living increases are impacting on every aspect of our work so we are able to do much less with the money we have available from rental income.”
“Developments of new homes would not be possible without the grant we received through the Scottish Government’s Affordable Housing Programme but even with the grant, the finance we are required to commit to each new development has increased substantially.”
Despite the issues, rural development does go ahead. HHP has recently delivered new housing developments in Garrynamonie, Howmore and Balivanich, and has a further 12 homes planned for this financial year, and a further 16 by 2026.
Matching housing stock to local need requires a flexible approach, says Donna Young, Smart Clachan Development Officer at Rural Housing Scotland in Balivanich: “We believe that affordable homes come in all shapes and sizes. Our Smart Clachan development at Rubha Bhuailt in Lochboisdale incorporates energy efficient homes alongside shared amenities, such as a workspaces and poly crubs. The eight houses in the development will be available to purchase through shared equity, with islanders given priority. The project has only just been submitted for planning permission but we have already had notes of interest from 14 people, some of whom are current HHP residents.”
Partnership launched to tackle empty homes
Tighean Innse Gall (TIG) and the Scottish Empty Homes Partnership (SEHP) have launched a joint project to tackle the issue of empty homes, working closely with the Comhairle to purchase and refurbish empty homes for social rent, mid-market rent, and rent-to-buy.
A minimum of twelve homes will be brought back into use over the course of the two-year project, making them more attractive to people who wish to remain on the island and also attracting new families to re-locate to the islands.
Donna Smith, Chief Executive Officer, TIG, said: “We are truly excited about the difference this partnership could make in terms of tackling the problem of empty homes in the Outer Hebrides. Our project will build on the fantastic empty homes work undertaken by the Council in the last few years and we will work with the local Empty Homes Officer to ensure the partnership is a success.”
The Western Isles has one of the highest rates of vacant dwellings anywhere is Scotland at 8.1%, against a national average of 3.4%, The islands also have the second highest percentage of long term empty properties, the second highest percentage of second homes and the highest proportion of unoccupied council tax exemptions. Scottish Government estimates there are 596 properties that have been empty for six months or more, 462 of which have been empty for more than a year.
Short Term Lets Licence and fees for tourism businesses set out by Comhairle nan Eilean Siar
Legislation introduced by Scottish Government at the start of the year will require those renting out accommodation for short term lets to register their business with their Local Authority.
The legislation covers both those who rent out separate properties, and those who rent out part of their own home, so will cover traditional self catering as well as guest houses and B&Bs.
The Comhairle must have its new licensing scheme established by October of this year, and hosts will have until April 2023 to apply for a licence. The Comhairle must consider an application for a short term let licence within a period of six months of receiving the application, and determine the licence within 12 months.
Any short-term let licence granted by the Comhairle will be subject to mandatory conditions, which primarily cover safety, including overcrowding.
The Comhairle has been granted powers to charge fees for licence applications and monitoring, and to limit the number of accommodation lets operating in designated areas. The draft documents pertaining to the scheme set out a preferred ‘light touch approach, which will be reflected in lower licensing fees’. The draft fee scale ranges from £66 to £133 per annum, depending on the type of property and the number of guests.
Designated control zones have not been introduced at this stage, but the Comhairle has not ruled out that option, stating it will utilise the licensing scheme information to set baseline data to help identify and monitor any problem areas if considering future control zones.
The Comhairle estimates there are between 770 and 950 short term lets operating in the Western Isles, made up of 700 to 800 secondary letting premises and 70 to 100 B&Bs and guest houses, but recognises that the numbers may be higher than the available data suggests.
Outer Hebrides Tourism last ran a full visitor survey before the pandemic, when annual visitor numbers stood at 219,000, with an estimated £65m coming into the Western Isles, a quarter of which relates to Uist. The current total income is now expected to be well over £70million.
A Comhairle spokesperson said “Short-term lets are an important part of the tourism sector as well as providing vital accommodation for workers coming to the islands.”
The new Scheme has not gone down well with Tourism bodies. Sarah Maclean, CEO of Outer Hebrides Tourism, shared her concerns with Am Pàipear: “We are aware of the problems caused by unregulated lets in some mainland areas but we’re very clear that Short Term Lets Licensing is not right for the islands. Scottish Government is using a sledgehammer to break a nut. But with the legislation now in place we are focused on supporting our members to navigate its roll-out as best we can.”
Ms Maclean continued: “Tourism accounts for 10-15% of all economic activity on the islands and the proportion is higher in rural areas like Uist, where there are hundreds of small businesses relying on the additional income that short term lets bring. We recognise there are infrastructure issues but we believe this is not the way to resolve them.”
The Comhairle public consultation on the short term lets issue generated 230 responses, 70% of whom were host operators. Feedback is still being collated but the published comments included a wide range of views.
Rural Housing Scotland working on housing solution with Stòras Uibhist
Iain Stephen Morrison
Rural Housing Scotland is to lead on an ambitious new initiative to tackle the interlinked issues of depopulation, demographic change and the climate crisis through the establishment of innovative housing developments named ‘Smart Clachan’.
Smart Clachan are described as a modern interpretation of traditional island townships, consisting of a few houses and crofts, utilising community-led, cooperative housing models to create modern, affordable homes. Next to the houses there would be shared services and facilities, such as a community work hub, to enable householders to establish their own businesses or work remotely for local, national and international companies.
Rural Housing Scotland is working alongside community landowner Stòras Uibhist, which is providing sites for the development of ‘Smart Clachan’ on South Uist.
‘Smart Clachan’ are proposed for several locations and, if realised, could support repopulation through the provision of homes and workspaces that are affordable, cooperative, interconnected, sustainable and low carbon.
Young people have raised serious concerns about access to housing, in particular since the onset of the pandemic, warning there is a risk of an “economic clearance” from island communities as demand for houses increased in the aftermath of COVID-19.
Interest in island properties has apparently soared in recent times, giving rise to the view that young people who live in the region are being outbid for houses and that an increase in the number of second homes is imminent, with a negative impact on efforts to retain population in areas like the Outer Hebrides.
Rural housing Scotland aims to address this situation and, with funding secured from the Emsée Fairbairn foundation, working in partnership with Stòras Uibhist, will recruit a project manager to lead the delivery of ‘Smart Clachan’.
Darren Taylor, chief executive of Stòras Uibhist, commented: “We are delighted to be working in partnership with Rural Housing Scotland. We are committed to playing our part in housing development and are encouraged by recent progress regarding the site at Rubha Bhuailt through the Scottish Government ‘Islands Housing Fund’. We continue to work hard to progress these complex projects to ensure the right outcome for the community.”
Derek Logie, chief executive of Rural Housing Scotland, added: “We are incredibly thrilled to be able to announce the support for Smart Clachan from Esmee Fairbairn. This builds on work funded by the Scottish Government to develop the initiative and we look forward to work starting on site to build this innovative project next year.”
“The grant will pay to employ an island-based project manager who will pull together the funding streams required to build the Smart Clachan. Stòras Uibhist has been invited to apply to the Scottish Government ‘Islands Housing Fund’ for a grant to build affordable housing and are investigating construction options, including modular housing developed by Modular West based on Barra.”
Work has started on the construction of fourteen new houses on Benbecula and South Uist
Iain Stephen Morrison
Fourteen new homes are now under construction, with ten to be built on Benbecula and a further four on South Uist.
Hebridean Housing Partnership said the development in Balivanich will include two one-bedroom houses, four two-bedroom properties and four houses with three bedrooms, while there will be two three-bedroom and two two-bedroom homes constructed at Howmore.
Calmax Construction Ltd is the contractor working on the Balivanich development, which is expected to be completed in early 2022, while MacInnes Bros Ltd is building the four new homes at Howmore, which are expected to be ready for tenants later in 2021.
Last year Hebridean Housing Partnership invited suggestions for names for the Balivanich development and settled on Johnstone Court, after the late Donald John Johnstone, a well known character from Benbecula.
Iain Macmillan, chairman of Hebridean Housing Partnership, commented: “Both the ten houses at Johnstone Court and four houses at Howmore, along with recent developments at Torlum and Garrynamonie, are part of the Hebridean Housing Partnership commitment to the delivery of the Strategic Housing Investment Plan, developed and agreed by Comhairle nan Eilean Siar and delivered in partnership with Hebridean Housing Partnership and Scottish Government.
“We recognise that the provision of social housing is one way of providing the homes required to ensure the sustainability of the islands and are happy to work with local and national partners to deliver what is needed.”
Mr MacMillan added that a further eight homes, currently in the planning process, are to be built in Lochmaddy.