The biggest survey ever undertaken of housing needs in Skye and Lochalsh has revealed that the scale of the problem is significantly worse than public agencies had estimated.
Between 1,300 and 1,700 job vacancies are currently unfilled because of the lack of accommodation, suggesting that housing scarcity is potentially 200% higher than the Housing Needs Demand Assessment (HNDA) for the area.
The Business Housing Needs survey was commissioned by SkyeConnect, Lochalsh and Skye Housing Association, Highlands and Islands Enterprise (HIE) and the Highland Council. The research was conducted by Edinburgh firm 56 Degree Insight in February and March, with responses from 143 businesses.
The research revealed that two in five businesses are currently experiencing recruitment problems, with the most significant issues amongst businesses with five employees or more.
A further 29% of businesses have offered a job to an individual who has decided not to take the role. Accommodation issues were mentioned in around half of cases.
One in five people employed in businesses in the area live outside Skye and Lochalsh and one in four don’t live in their own home.
A quarter of businesses expect the number of positions they need to fill to increase over the next three years, while 65% expect recruitment of permanent posts to get harder - and 58% expect the situation to worsen in relation to seasonal posts.
The report concluded that the housing shortage is already impacting on the local economy, with many businesses forced to reduce the services they deliver, or choosing to not invest in the growth of the business.
Respondents to the questionnaire, along with participants in follow-up interviews, highlighted that there are many potential solutions - including more investment in all forms of affordable housing - but there is no one-size-fits-all solution and government policy needs to be adaptive to remote and island needs.
The stakeholders in the report will now use the data to lobby governments and other public and private sector agencies for the investment required to alleviate the housing crisis and protect the economy of Skye and Lochalsh.
SkyeConnect director Clare Winskill, who was instrumental in commissioning the study, commented: “Pre-pandemic the Skye and Lochalsh economy was buoyant attracting visitors, both domestic and international, whose experience of our beautiful area was positive and who wished to return.
“Post-pandemic, new and existing businesses are now really struggling to service demand in the tourism sector - even though that demand has not as yet returned to pre-pandemic levels.
“89% of businesses with five or more employees are experiencing significant issues with recruitment - and there is no confidence that the extreme recruitment issues will abate.
“In real terms we are looking at a significant contraction of our economy here - now, if the rapid building of affordable housing, that will allow recruitment and retention of a workforce, does not take place.“
Neil Clapperton, chief executive of the Lochalsh and Skye Housing Association, believes the data produced in the report will provide a compelling case for urgent investment in the area’s stock of affordable housing.
“Emerging from Brexit and the pandemic, this survey shows government and society need to have a laser-like focus on economic development.
“If Skye and Lochalsh is to function as a popular tourist destination, if its communities are to have an economic future, and rural economic diversification is to have any meaning, it needs a smart, collaborative and flexible approach to affordable housing, and we need a lot of it, and now.”
HIE area manager Alastair Nicolson believes the report will inform many investment decisions beyond the immediate housing need.
“This report helps evidence the scale of demand for housing to support future economic growth.
“A strategic housing investment plan of the required type and scale will also help inform investments in infrastructure, utilities, roads, healthcare, and business premises.”
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