A shortage of places for staff to live is making it hard for island businesses and public services to recruit and keep the people they need. MICT has commissioned two pieces of research to set out the scale of the problem and what would fix it, and is now working with partners on delivery.
If your business is affected, or you have land, property or ideas that could help, contact Helen MacDonald, Housing Development Manager, at hmacdonald@mict.co.uk or call 01680 812 912.
TO CONFIRM: The old page reads as a set of news announcements rather than a live project page. MICT to confirm the current stage of this work and what happens next, so the page can say what a reader can do now.
What the research found
MICT commissioned Community Enterprise, working with Communities Housing Trust, to carry out a feasibility study and options appraisal.
Over 50 businesses responded to the stakeholder survey. Over 75% said the lack of accommodation restricts the number of staff they can recruit and creates retention problems, and two thirds said it limits their growth plans. Accommodation was needed for 127 existing staff and for a further 133 additional staff, at least 260 people in total, which is 7% of the islands’ workforce. Because the survey covered only a sample of businesses, actual demand is higher.
All of those surveyed agreed that better accommodation would improve the local economy, and a third said they would be willing to invest in a solution.
The study found that access to land and funding, landlord legislation that fits badly with seasonal or incoming staff, and heavy housing management requirements have all held back delivery. It recommended that MICT press on with developing accommodation across the islands and consider a pilot project with Argyll & Bute Council, and it set out funding models including modular new build, moveable pods and shared accommodation.
Read the research report executive summary
What it is worth to the islands
MICT then commissioned BiGGAR Economics to quantify the effect of meeting that need, or not.
If accommodation were provided for all 260 existing and incoming workers identified, in 10 years that could support additional economic activity of £13.0 million gross value added (GVA) and potentially 274 jobs. In 20 years it could increase the size of the islands’ economy by £20.1M GVA a year and nearly 400 jobs.
The report said that “the staff accommodation shortage in Mull and Iona is stifling economic activity, harming business performance, and reducing the supply of residential accommodation available to residents.” Businesses are having to buy accommodation for their own staff, which costs them money and takes properties out of the general housing market. It is a path of last resort.
Read the Economic Impact Assessment executive summary
What is being done
Over 100 new houses are planned for delivery across Mull, which will reduce the pressure on businesses and give local people more options.
Argyll & Bute Council has confirmed investment of around £1.5M in Mull for keyworker accommodation, working in partnership with MICT, as part of its £70M Rural Growth Deal. Scottish Government Islands Programme funding is enabling the Council to bring mains water, electricity and drainage to the Rockfield site in Tobermory, with the accommodation itself to follow using Rural Growth Deal money.
With many businesses already spending significant sums on staff accommodation, there may also be scope for partnership working to pool resources.
TO CONFIRM: The Rural Growth Deal is described as £50million on one part of the old page and £70million on another. Confirm the figure, and confirm what stage the Rockfield site has reached.
What people said
Local business owner Joe Reade: “The scarcity of affordable housing in Mull is the single biggest barrier to a secure economy and healthy society on our island. As an employer we find it incredibly difficult to recruit, at all levels.”
Anne Fraser, General Manager of Tobermory Harbour Association: “All Island businesses will be well aware of the issues raised in this report, however, to see the extent of the impact presented in the report is quite staggering.”
Morag Goodfellow, HIE Area Manager for Argyll and the Islands: “This report highlights the significant potential growth within the Mull and Iona economy that could be realised if housing needs were addressed.”
Who paid for the work
The feasibility study was funded by the Rural Communities Ideas into Action fund, supported by the Scottish Government and delivered by Inspiring Scotland. The Economic Impact Assessment was funded by Highlands & Islands Enterprise.