Councillors have approved the allocation of Strategic Housing Funding (SHF) to projects aimed at improving the availability of housing in communities where there is an ongoing demand for affordable homes.

An additional SHF contribution of £175,000 will be made to cover extra costs on Oban’s Dunbeg Phase 3 development. Built by Link Group and completed in August 2023, the project delivered 300 affordable houses - a significant contribution to supply in Oban and Lorn. The new funding will cover added costs created by the pandemic, time delays and fuel and construction cost inflation. Both Link and the Scottish Government have agreed to pay additional costs towards the development.

Around £100,000 from the SHF will also cover feasibility studies on a project in Tiree to create serviced self-build plots on council-owned land in Balemartine and Crossapol. Tiree has been identified as an area of high housing need and demand, and one of the region’s fragile population areas.

Finally, £50,000 will cover feasibility studies for delivering footpath improvements on Glencruitten Road, to facilitate the potential development of affordable housing at Glencruitten Rise, Oban.

The delivery of housing on plots has been a traditionally important part of new build housing delivery in Argyll and Bute, with self-build plots being considered affordable housing.

Research carried out by the council has identified an ongoing interest in this form of housing provision, particularly on the islands, and this is supported by a National Islands Plan Survey which suggests that 45% of island residents believe that self-build is a viable option for home ownership.

The council’s policy lead for housing, Councillor Jim Lynch, said: “Since the council highlighted the scale of Argyll and Bute’s Housing Emergency, a key priority has been to enhance availability of affordable housing for our communities and to identify public sector land that can be utilised to contribute to supply.

“This additional allocation of Strategic Housing Funding is further evidence of our determination to tackle the area’s housing challenges and will deliver much-needed support for developments aimed at helping people in our communities achieve their home ownership ambitions.”