More housing can help unlock the potential of the Highlands

By Albyn Group CEO, Kirsty Morrison, this article was first published in The Scotsman on 3rd December 2024.

It has now been over six months since the Scottish Parliament declared a housing emergency. Here in the Highlands, the council declared a ‘housing challenge’ and it is a priority for Albyn Housing Society, and other social and private developers in the area, to deliver much-needed homes for local people. There is too much at stake if we do not.

Perhaps most significantly, there is the economic boost that a successful Inverness and Cromarty Firth Green Freeport can bring to an area that has been suffering from population decline for decades. This project could bring up to 15,000 new jobs and around £3bn in inward investment. It would mean that the Highlands would be at the centre of delivering net zero for Scotland and the wider UK through the clustering of the renewable energy sectors, delivering high-quality, well-paid green jobs that are fit for the future. Already we are seeing the benefits of this, with the Chancellor announcing funding in her recent budget for the Cromarty Hydrogen project.

Similarly, SSEN has announced a £20bn investment to upgrade the transmission network in the north of Scotland to support net zero transmission and long-term energy security. The construction of this network will bring considerable economic benefits to the region. It will create a need for up to 5,000 highly skilled workers in the Highlands and further afield by 2030.

Of course, all of these jobs are extremely welcome and will unlock the potential of the Highlands and its people. This is a once-in-a-generation economic opportunity and boost for the region. But these workers will need a place to call home. It is estimated that we will need as many as 24,000 new homes in the Highlands over the next ten years if we are to keep up with future demand as well as satisfy current housing needs.

This will require a joined-up approach if we are to get anywhere near this target. It will demand proper investment and willingness from the private sector, government, as well as from Registered Social Landlords (RSLs), working in partnership with the local authority.

From a government perspective there will need to be more funding for building affordable homes. Last year, the Scottish Government cut this budget by over £200m. In her budget tomorrow, and despite a difficult fiscal position, I hope that the Finance Secretary will be able to reinstate this funding, if not increase it substantially.

That would allow RSLs and partners to rise to the challenge by developing more, and muc- needed affordable homes in the Highlands, through social rent, mid-market rent and low-cost home ownership. As one of the largest social housing providers in the Highlands, Albyn Housing Society has the desire to contribute substantially to meeting the housing challenge. However, without the proper funding from central government, and the identification of land, the homes needed to combat the Highland housing challenge will simply be out of reach.

We are on a path to a Highlands reinvigorated by investment, repopulation and growth. The potential social and economic benefits for the people of the Highlands could be transformational. It would be a serious failure if a lack of homes were to stop this being realised. We stand ready to support this once-in-a-generation opportunity for the region.