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OIC sign off partnership with national housing association to build 500 new homes

An external housing association, Places for People Scotland, has entered into an agreement with Orkney Islands Council to build 500 new homes.

A national housing association is set to deliver 500 new homes over the next decade — after Orkney Islands Council (OIC) entered into a “landmark” partnership with Places for People Scotland.

Places for People Scotland’s developments will focus on larger sites, offering a mix including social rent, mid-market rent, and affordable home ownership options.

Around 60 per cent of new homes will be affordable, supporting OIC’s Local Housing Strategy (2024) which sets an ambitious target of 1,030 new homes over ten years, with a 60/40 split between affordable and private housing.

OIC say that to meet that goal requires innovation, collaboration and finance — leading the authority to identify the need for an additional housing association to help unlock the county’s full potential.

However, The Orcadian has previously heard of concerns from within Orkney’s construction sector on the impact that an external housing provider could have on local firms who fear being priced out of housebuilding contracts.

This, it was feared, could also have a detrimental impact on the prosperity of the industry as a whole including jobs and training opportunities such as apprenticeships.

Councillor Gwenda Shearer, chairwoman of OIC’s education, leisure and housing committee, described the lack of available housing “without a doubt the biggest challenge facing Orkney” and required “decisive and bold action”.

She said: “We are delighted that Places for People Scotland have come on board to support local providers in building more housing in Orkney — ensuring that more homes are available for more people.

“The addition of Places for People Scotland to the local partnership will provide additional strength to the existing local partnership in order to meet the ambitious vision we have to deliver Orkney’s housing needs.”

She added: “Orkney Islands Council, OHAL, local development trusts and now Places for People Scotland are committed to working with the local construction industry through the relevant procurement process of building houses — helping to create local work and boosting the local economy.”

Andrew Usher, group managing director for developments at Places for People, said: “We’re proud to be joining forces with Orkney Islands Council to help deliver the quality and mix of homes that local people need and deserve, with 60 per cent being affordable.

“This partnership is about more than just building houses — it’s about strengthening communities.

“We’re committed to working closely with the council, local contractors and suppliers to ensure that the investment in new homes also supports jobs, skills and the local economy.”