Last year, Orkney Islands Council gave the green light to the outline business case to knock down the buildings, with work going ahead since then to deliver a comprehensive programme of surveys, investigations and procurement process.

Building warrant and planning permissions for the demolition have been put in place.

In January 2027, the works on site will get underway. By 2028, completion is anticipated.

Knocking down the building, which has been largely empty since 2013 other than a section used for a nursery setting, will facilitate housing in Kirkwall’s centre.

It is expected that Places for People Scotland could deliver up to 60 affordable homes on the site.

The sale of the site is subject to separate commercial and legal processes.

A target of 1,030 new homes over the course of a decade, with a 60:40 split between affordable and private housing, has been set in the council’s Local Housing Strategy (2024).

The target is set to be reached via input from the council, Orkney Housing Association Limited (OHAL), Places for People Scotland, and Development Trusts, alongside private sector developers.

In December 2025, the council entered a landmark partnership with Places for People (PfP) Scotland to provide up to 500 new homes over the next ten years – becoming the first national housing association to build in the islands.

Councillor Sandy Cowie, chair of the council’s policy and resources committee, said: “Today’s decision marks another important step in tackling the housing challenges facing Orkney.

“The former Papdale Halls has stood largely empty for more than a decade and, while demolition is a significant investment, it will unlock a strategically important site in the heart of Kirkwall for future housing development.”

In due course, more information on the details of the contract - such as the successful bidder - will be released.