Ground work has started on a housing project in Tobermory, Mull, aimed at making it easier for businesses and local organisations to recruit and retain staff.
Mull and Iona Community Trust (MICT) is building 12 homes on the site at Rockfield.
They include 10 two bed and two one bed units.
The homes will be made available to local businesses to rent to staff and to individuals as “stepping stone” accommodation for when they initially move to the island.
MICT says the homes will “solely be used for such purposes and never as holiday lets”.
Argyll and Bute Council is delivering the project on council-owned land at Rockfield, having secured grant funding from the Scottish Government’s Islands Programme Fund, Place Based Investment Programme and Crown Estates.
MICT commissioned a feasibility study in 2022 which confirmed there were 133 unfilled vacancies on Mull and Iona and 127 people living in unsuitable accommodation, representing seven per cent of the islands’ workforce.
The high number of vacancies is due in part to the high number of holiday homes on the island which makes it difficult for companies to hire staff.
MICT’s housing development manager commented: “We hear every day of the difficulties local businesses and organisations are facing in recruiting and retaining staff. This is not only impacting on the viability of businesses and the effectiveness of our essential services, but on the sustainability of our island communities.”
Once the project is complete, MICT will potentially take the management duties over from the council.
Leader of Argyll and Bute Council councillor Jim Lynch said: “We are committed to addressing the housing shortage in Argyll and Bute and, since the council declared a housing emergency last year, we have been working hard to deliver a variety of initiatives to address the issue.
“This new development on the Isle of Mull will open the door to more accommodation for key workers who often struggle to find somewhere to stay.”
Local business owner Joe Reade added: “The extreme scarcity of affordable housing is not just a huge social problem, but economic too.
“Island businesses like ours could be growing and employing many more people if only there was somewhere for their employees to live.
“A vibrant, sustainable and healthy community can’t be built on holiday homes and retirement cottages alone.”
It is hoped to start building in 2025.
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