Building Safety Levy (Scotland) Bill: island communities impact assessment
Island communities impact assessment for the Building Safety Levy (Scotland) Bill.
Data and stakeholders
This assessment draws upon existing recent evidence on housing in island communities, including the Rural and Islands Housing Action Plan,[1] Housing to 2040,[2] and a Local Government, Housing and Planning Committee paper on rural and island housing[3] which highlight the existing housing challenges in these areas, including:
- Housebuilding in rural and island areas attracts higher construction costs, with deliverability affected by construction capacity and supply chain challenges
- Rural and island communities are facing depopulation challenges, in part due to the lack of availability of housing
- Private developer-led housebuilding in rural and island areas is limited, with increased reliance on self-build, community-led housing, affordable housing, and smaller developers
- Identification of affordable and deliverable land opportunities in rural and island areas can be more challenging
- Employers in rural and island areas struggle to recruit staff due to lack of available housing
- Pressures from tourism and the high numbers of second and holiday homes are exacerbating the lack of available housing
Data from Registers of Scotland[4] shows that the percentage growth in house prices in the past five years was higher for the island regions than for mainland Scotland, with a 30% increase (from £140,000 in 2018 to £182,000 in 2023) across the Islands, compared to 23% for mainland Scotland (from £151,000 to £185,000) over the same period. This is a continuation of trends from previous years. Residential sales in the Scottish island regions comprise less than 2% of all sales in Scotland.[5]
Our primary stakeholders for the SBSL were identified as developers of residential properties. However, to ensure a greater understanding of the specific housing issues facing island communities, we also sought engagement with rural and island local authorities, and organisations and enterprises representing rural and island interests. We also engaged internally within the Scottish Government with colleagues on the National Islands Plan Team.