News / Government housing grant “disappointing”
SHETLAND Islands Council has welcomed £600,000 it is to receive from the Scottish government’s latest round of funding to build council homes worth £30 million.
However the council said that after being turned down for funding in the last two rounds, the size of the grant was “disappointing” given the size of the islands’ homeless problem.
The government said that the £600,000 would help the council build 20 homes, but will cover less than a third of the actual £2 million it will cost, with the average price of building a home in the islands set at around £100,000.
The government’s offer comes at a time housing minister Alex Neil has told the council it plans to remove the £1.2 million Shetland receives each year as housing support grant.
The SIC is the only authority in the country to receive the grant because of the size of its £46 million housing debt, reduced from £84 million, that was built up during the 1970s erecting homes for the thousands of workers who built Sullom Voe oil terminal.
Now the council is planning on increasing that debt to the tune of £10 million by embarking on a programme to build 90 homes in Lerwick, Brae and Virkie.
SIC head of housing Chris Medley said: “This £600,000 is very welcome. It is a lot of money and better than nothing that we have had in the past. However personally I am disappointed that they couldn’t do more.
“We have 1,000 people on our waiting list and I struggle to understand why the needs of waiting list applicants in Shetland are any less than any other parts of Scotland.”
However SIC housing spokesman Allison Duncan said he had a more positive outlook on the government grant.
“I honestly believe this is a step in the right direction and I hope it opens the gateway in future if and when more grant funding for new house building comes from the Scottish government,” he said.
The government has made it clear to the council privately that it regards Shetland as one of the less needy parts of Scotland due to its large oil reserves.
The government has told the SIC that it will deliberate on the future of the housing support grant in September, but will have to consult with local government umbrella group COSLA before they go ahead with any cuts.
Meanwhile work could start on building 76 homes at Hoofields, Lerwick, this summer if planning permission for the scheme goes through. Planning permission must also be sought for an innovative scheme to build four houses by Horseshoe Close in Virkie, but permission is in place to build 10 houses at Gallowburn, in Brae.
The SIC had applied for £4.3 million towards its ambitious house building plans. Orkney Islands Council has received a total of £2 million over the past three funding rounds.
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