Skye

The impacts of the housing crisis on business in Skye and Lochalsh

During the last 4 months we’ve been working on an important study, commissioned jointly by Highlands and Islands Enterprise, Lochalsh & Skye Housing Association, SkyeConnect Tourist Destination Management Organisation and The Highland Council, which has sought to measure the impacts of the lack of affordable housing in Skye and Lochalsh on businesses, in particular their efforts to recruit staff.

The study has involved a mixture of approaches including an online survey of 143 businesses and ten one-to-one in depth consultations with a range of organisations operating in the area (including representatives from several larger private sector companies, the NHS and housing organisations).

The survey results were published earlier this month, revealing that the scale of the problem is significantly worse than public agencies had previously estimated. Headline findings from the research included the following:

  • Between 1300 and 1700 job vacancies are currently unfilled because of the lack of accommodation.

  • 2 in 5 businesses are currently experiencing recruitment problems with the most significant issues amongst businesses with 5 employees or more

  • 29% of businesses have offered a job to an individual who has decided not to take the role. Accommodation issues were mentioned in 50% of these cases

  • 1 in 5 people employed in businesses in the area live outside Skye and Lochalsh and 1 in 4 don’t live in their own home

  • 25% of businesses expect the number of positions they need to fill to increase over the next three years

  • 65% expect recruitment of permanent posts to get harder and 58% expect the situation to worsen in relation to seasonal posts

Our 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 their business. Looking ahead, the chronic lack of supply of affordable housing is constraining economic growth and limiting the ability of businesses to respond to development opportunities across the area.

However, respondents to the study also highlighted that there are many potential solutions to the problems including more investment in all forms of affordable housing. There is no one-size-fits-all solution and government policy needs to be adaptive and sensitive to remote and island needs.

As shown below the release of the report has generated much interest in the press. Our clients for this project will now use the results from the survey to lobby Governments and other public and private sector agencies for the investment they feel is required to alleviate the housing crisis and protect the economy of Skye and Lochalsh.

We look forward to continuing to support our clients for this project in the sharing of results. If you would like to find out more about the research please get in touch.

 

Finding solutions to business housing needs in Skye and Lochalsh

Next month fieldwork will go live on a new survey of businesses based in Skye and Lochalsh, seeking to find out to what extent a lack of affordable accommodation is making it difficult to recruit staff and to obtain the business community’s views on possible solutions to the problem. 

This important new study, which has been commissioned jointly by Highlands and Islands Enterprise, Lochalsh & Skye Housing Association, SkyeConnect Tourist Destination Management Organisation and The Highland Council, follows on from similar studies undertaken by 56 Degree Insight during 2021 in Badenoch & Strathspey and Lochaber. These previous studies provided valuable evidence on the impacts of a lack of affordable housing in these areas including estimates of the proportion of businesses facing recruitment challenges because staff cannot find accommodation, the numbers of positions impacted and details on the types of accommodation most needed to address these problems.

The survey of businesses in Skye and Lochalsh will aim to gather similar evidence on the extent that a lack of housing is impacting upon recruitment and go further by asking participants to have their say on the best possible solutions - giving their own opinions on the actions that should be taken and their reactions to a range of potential solutions. 

While the core of the study will be an online survey of businesses, due to take place during February, a follow up series of one to one interviews will be undertaken with a selection of organisations to obtain more in depth feedback on the issues faced and the actions which need to be taken to resolve them.  This stage will provide us with the opportunity to engage in more detail with some of the larger employers in the area and potentially other stakeholders including land owners.

We look forward to launching the new survey soon. If you would like to find out more about the research or if you are a business based in Skye and Lochalsh and would like to take part in the research please get in touch!