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Chamber

Meeting of the Parliament 31 October 2023

31 Oct 2023 · S6 · Meeting of the Parliament
Item of business
Rural and Islands Housing

I draw members’ attention to my entry in the register of members’ interests as someone who rents out a property, albeit that it is not in rural or island Scotland.

I welcome the publication of the action plan and the dedicated support that is being provided to tackle the lack of affordable housing in rural and island areas. I have no doubt that my Arran and Cumbrae constituents, and the businesses that operate on those islands, will welcome it, too.

In 2021, 18 affordable, energy-efficient council homes were built on Cumbrae, supported by a Scottish Government grant of £1.32 million. Last year, a mix of 34 general needs amenity bungalows and accessible council houses was built on Arran, backed by a £2.38 million grant. That represents £70,000 per council house, which is three and a half times the grant that is available for council housing in England.

That is in stark contrast to the mere six council houses that were built by the previous Labour-Liberal Democrat Administration across all Scotland over four years. Despite the financial crash, Tory austerity and the pandemic, in the past financial year alone, 1,947 council homes were completed across Scotland, as the minister strives to ensure that everyone has a warm, safe and affordable home.

Despite the Scottish Government’s ambitious targets, it is evident that our rural and island communities have experienced economic hardship, particularly due to economically active people’s difficulty in being able to afford island housing costs. Community-led housing projects such as Arran Development Trust’s Rowarden affordable housing project—the biggest such housing project on Scotland’s islands—are playing a key role in increasing the availability of affordable housing and, in turn, the prospects of islanders. Thanks to a record £1.512 million from the Scottish Government’s rural and islands housing funds—which represents £84,000 for each new home—18 one-bedroom, two-bedroom and three-bedroom homes are now under construction in Lamlash, backed by the provision of 24 further affordable building plots on Arran.

The project is an excellent example of a positive outcome that was created through collaborative working between the public and private sectors and the community. I trust that Arran Development Trust’s and islanders’ bold ambitions and dedication can be learned from to ensure that local communities’ voices are heard in planning processes throughout Scotland.

The continued support that was offered by civil servants throughout the project was greatly appreciated, with the announcement of the project in May being very warmly welcomed. However, it took some three years to secure a grant from the rural and islands housing funds. I urge the minister to explore how such projects can be expedited in future. It can be a long and weary process for organisations such as Arran Development Trust, which mostly consist of volunteers, to deliver projects, which acts as a deterrent to those who lack the dogged determination and patience of the trust’s members.

The First Minister’s visit to Arran on 23 August, when he met Arran Development Trust to discuss the demand for affordable housing, the cost of building on the islands and empowerment for island communities, ensured that islanders know that their lived experiences are valued when housing policy is implemented. The trust appreciated the opportunity to relay its concerns directly to the First Minister, and a number of the points that were raised are reflected in the plan.

Arran’s largest employer, the Auchrannie resort, has been vocal about how a lack of affordable island housing has impacted on its business, with many employees being unable to reside on the island in a home of their own. Auchrannie is an employee-owned business and it should be commended for providing 103 accommodation units to team members, which has removed the need to commute while supporting those who reside on the island. Understandably, however, employees do not see such accommodation as a home, leading to few retaining their employment for long, and its provision means that the true level of homelessness is, regrettably, underestimated. Team accommodation should not be included in figures on people who are housed if we are actually to reflect need.

The programme for government dedicated up to £25 million to identify homes for key workers in rural communities, and that funding is essential to ensure that businesses in rural and island communities remain afloat, particularly after the devastating impact of the pandemic. I welcome the island skills and repopulation pilot, with one of the three projects taking place on Arran and Cumbrae. Through the support for career pathways, retraining and upskilling, local economies on the two islands in my constituency will diversify, increasing capacity and skills across a variety of sectors and further supporting the delivery of more affordable housing.

I look forward to publication of the addressing depopulation action plan this autumn, and I will continue to work with the minister on island communities in order to tackle depopulation. That is essential if we are to ensure that islanders do not have to move to the mainland for housing.

North Ayrshire Council’s community wealth building approach to economic development, which is the first of its kind in Scotland, offers a unique opportunity to contribute to our wellbeing economy as well as the local authority’s five pillars while building affordable homes. By using local procurement, we can deliver more and better jobs, business growth and shorter supply chains, creating greater resilience while also supporting net zero ambitions. In turn, that will boost the local economy and increase opportunities to build more affordable homes.

As many island and rural communities across Arran experience, 26 per cent of the housing stock comprises second or empty homes. That is 735 properties, with 47 per cent in one village. Although those homes are not the primary cause of the island’s lack of affordable housing, they could play a role in the solution. While Arran’s economy is heavily dependent on tourism, it is essential that employers that support community services remain on the island, one key need being permanent and affordable housing. It is essential that we encourage empty and second homes into long-term rent across construction of affordable homes.

Arran Development Trust has long campaigned for councils to be granted more discretion over the rates of council tax on second homes, and it will welcome the secondary legislation to be delivered by the Scottish Government to enable local authorities to apply up to a 100 per cent premium on council tax rates for second homes from April next year. Compulsory sales orders can also play an important role and, as other members across the chamber have done, I urge the minister to take forward such orders.

The “Rural & Islands Housing Action Plan”, if and when it is implemented, should successfully tackle a number of issues that contribute to Arran and Cumbrae’s affordable housing crisis and that of other islands. I welcome the minister’s innovative approach to ensuring that island and rural communities will have increased access to affordable homes, thereby helping to boost local economies, and I welcome the minister’s promise to visit my constituency and meet directly Arran Development Trust and stakeholders who are affected by the prevalence of second and empty homes to ensure that housing policy alleviates the burden on islanders in my constituency.

15:23  

In the same item of business

The Presiding Officer (Alison Johnstone) NPA
The next item of business is a debate on motion S6M-11027, in the name of Paul McLennan, on the “Rural & Islands Housing Action Plan”. 14:22
The Minister for Housing (Paul McLennan) SNP
I am pleased to bring this debate to the chamber and to have the opportunity to provide an update on our approach to delivering the right homes in the right ...
Michelle Thomson (Falkirk East) (SNP) SNP
I noted the minister’s point about finance. Will he share with me what activities he has been doing to ensure that the right finance with the right risk prof...
Paul McLennan SNP
I have been doing a number of things. About two weeks ago, I met 25 institutional investors in London to talk about opportunities to invest in housing in Sco...
Fergus Ewing (Inverness and Nairn) (SNP) SNP
On 1 September, I wrote to the minister suggesting that, in order to meet the laudable aim of delivering 11,000 affordable homes by 2032, he should work clos...
Paul McLennan SNP
That is something that I think would be considered. In terms of engaging stakeholders, we met NFU Scotland and the Crofting Commission, and I also met Scotti...
Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Con) Con
There are 67,000 unoccupied properties in Scotland right now, and we all know from our constituencies that they are unsightly and a blight on Scotland. Does ...
Paul McLennan SNP
Rachael Hamilton makes a good point. A report by the Scottish Empty Homes Partnership, which was sent to the Scottish Government, touched on that issue, and ...
Finlay Carson (Galloway and West Dumfries) (Con) Con
Will the minister take an intervention?
Paul McLennan SNP
I am conscious of the time, but I will take one more intervention.
Finlay Carson Con
I thank the minister for taking the intervention. Given that 17 per cent of Scotland’s population live in rural areas, where we are seeing depopulation, shou...
Paul McLennan SNP
We have talked about 10 per cent being the minimum. That is key. I meet local authorities and economic development partners in that regard. We need to identi...
The Presiding Officer NPA
Please begin to conclude, minister.
Paul McLennan SNP
I believe that the delivery of the commitments in the action plan will further enhance our commitment to addressing the key challenges and will enable the de...
The Presiding Officer NPA
I call Rachael Hamilton to speak to and move amendment S6M-11027.1. 14:36
Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Con) Con
Less than one week on from the revelation that our former First Minister could spare just one slot in her diary for the whole of rural Scotland over the past...
Paul McLennan SNP
I have a couple of points. On the budget, at the start of this parliamentary session, the budget was £3.5 billion, and that has not been cut. I recognise th...
Rachael Hamilton Con
I am looking at the Scottish Government figures for 2022, in which there is a cash-terms cut in the housing budget. That has done nothing to help the rural a...
Kenneth Gibson (Cunninghame North) (SNP) SNP
Will the member give way on that point?
Rachael Hamilton Con
I will make some progress and perhaps take an intervention later. Against what the minister has just said about the Government working with the private sect...
Kenneth Gibson SNP
I am not sure how the member expects the Scottish Government to be able to deliver more homes with a £500 million cut in its capital budget, which is 9.7 per...
Rachael Hamilton Con
What a shame it is that Kenny Gibson has to devolve his responsibilities to another Government. Scotland has two Governments. This Parliament has huge devolv...
Paul McLennan SNP
Will the member take an intervention on that?
Rachael Hamilton Con
If the minister can tell people who live in rural communities why they are being short changed, I will.
Paul McLennan SNP
I come back to the point that I made to Mr Carson. The 10 per cent is a minimum target. It is not around a budget. We continue to speak to local authorities ...
Rachael Hamilton Con
I am delighted to hear that the minister wants to be more ambitious, but why are we not transparent and clear about what those ambitions are, rather than mis...
Mark Griffin (Central Scotland) (Lab) Lab
Before I begin, I draw members’ attention to my entry in the register of members’ interests, which shows that I ceased to be a landlord this summer. Today’s...
Paul McLennan SNP
I have a couple of things to pick up on because they are key to give a bit of context. Kenny Gibson touched on the fact that we deliver about 40 per cent mor...
Mark Griffin Lab
I would absolutely support more capital spending on housing, and I will come on to talk about some of the policies that we have been suggesting in the chambe...
Paul McLennan SNP
I, too, met Salmon Scotland, and discussions are on-going about the proposals that it made, which Mark Griffin knows about. I think that it met us on the sam...