A new report commissioned by Highlands and Islands Enterprise (HIE) forecasts that recent pressures on workers’ accommodation are set to continue for the next decade, unless new homes are built and more local people acquire skills in construction and engineering.

The research assessed the likely demand for housing and accommodation from a number of industries and the public sector, over the next ten years. It makes it clear that despite the completion of the Shetland Gas Plant contract over the next few months, there will still be an ongoing need for accommodation in Shetland necessary to expand the workforce and support business growth. Businesses in Shetland and the public sector will still be constrained by a shortage of labour, in part, caused by accommodation shortages.

The report was commissioned to help people, communities, local government and businesses understand what the demand for housing is likely to be over the next ten years, and determine what measures can be taken to grow the workforce and support jobs and business growth.

It found that recent pressures will not be short lived. Although unmet demand for workers’ accommodation is projected to drop from a peak in 2014 – when approximately 3,000 extra workers were in Shetland, accommodation will still be required for between 500 and 1,500 extra workers every year to 2024.

A key issue is the lack of availability of private housing to rent or buy. The report states that there is a requirement of between 24 to 70 housing units per year for the next five years for the anticipated incoming private sector workforce.

Similarly there is a requirement for provision of 35 – 40 units of private housing to meet labour demand for the public sector for the same period. Additionally, at least 30 units will be required for a growing student population.

The report’s recommendations include encouraging the private sector to develop housing and worker accommodation in Shetland; and encouraging industry and training organisations to look at ways to support more local people into the construction and engineering sectors.

The HIE warned a ‘likely mix’ of hotels, rented houses and ships was likely to continue: “More than one solution will be required to maximise the benefits to Shetland from improving worker accommodation supply.

“The pressure on accommodation, particularly private rented housing, will not be short-lived.

“Demand is likely to be met through Sella Ness , barges and ships, and other short-term provision.”

It recommended public agencies negotiate better, make better use of the planning process, access external funding and act as a broker to ensure more housing is built.

In the short-term, the agency recommended that “a top priority for action is considered to be providing more small units for in-coming private sector workers”. This was estimated at around 70 units per year.

It added: “Without more housing, businesses will continue to be constrained from growing and achieving their potential, and new businesses will find it more difficult to become established due to cost and availability of labour.

“If more houses are built then the population can grow and the age structure will become less skewed.”

The implications of the report will be considered by the Shetland Community Planning Partnership to look at ways to reduce problems but also make the most of opportunities that may present themselves.

Rachel Hunter, Shetland area manager for HIE, said: “The shortage of accommodation in Shetland has no doubt held back economic growth and it is clear that there will be continuing pressure even after the completion of the Shetland Gas Plant. There will still be opportunities for the private sector in housing development and agencies in Shetland will be looking to work together to consider how we can help.”

The Shetland Worker Accommodation Report 2015, commissioned by HIE and undertaken by Steve Westbrook, AB Associates and Sandy Anderson is available to download at www.hie.co.uk/shetland-2015.