Orkney Housing Association has signed an agreement with the Scottish government for £3.94m Housing Association Grant (HAG) to be provided this year.

The agreement will help fund the Association’s programme, which includes the construction of 135 homes already on site and a further 50 new housing units to be approved during the year.

Sally Inkster, Orkney Housing Association’s Chief Executive, said: “At £3.94m, our allocation has dropped quite considerably from the £7.4m we were awarded last year which is of course disappointing.

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"However, with the inclusion of £750,000 funding for the Council’s house building programme, overall Orkney’s share of the Highlands and Islands allocation has actually increased which is good news for those in Orkney who are looking for an affordable home to rent.

"The joint OIC/OHAL waiting list numbers are still rising with over 680 households for rented housing and 58 households for low cost home ownership showing that investment in affordable housing is still desperately needed in Orkney.”

Orkney Housing Association’s busy programme will have 13 projects under construction during the year of which nine will be completed by the year end. This means 91 new homes for North Ronaldsay, Holm, Kirkwall and St Margaret’s Hope.

The new site starts are all in Kirkwall this year but design work will also commence on developments for Burray, Shapinsay, Dounby and Stromness in preparation for future year approvals.

(GK/KMcA)