Proposals to redevelop St Rognvald House in Kirkwall to provide accommodation for agency workers in Orkney have taken a step forward.

The Council's Policy and Resources Committee considered a report and agreed the project should proceed to Stage 2 of the Council's Capital Project Appraisal process.

Residents are scheduled to relocate from St Rognvald House to the new Kirkjuvagr House in Kirkwall in July, which would free up the building for temporary use.

The plan is to create accommodation for up to 39 visiting workers in the former care home, offering individual bedsit-style rooms with shared bathrooms, cooking facilities, dining areas and laundry provision.

The Council's Essential Workers Housing Strategy, approved in April 2024, identified the need for a range of options for key and other essential workers who live in Orkney on a temporary basis, including repurposing redundant properties.

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Amid recruitment challenges faced across Scottish local authorities, services currently rely on significant numbers of agency staff to maintain required standards.

This reliance, particularly within Orkney Health and Care (OHAC), has increased accommodation costs and reduced the availability of housing for permanent residents, as agency staff use mainstream private rented or holiday accommodation.

It is estimated the project could reduce OHAC costs by up to £250,000 a year.

In the longer term, the site is allocated for future affordable housing as part of the Council's Strategic Housing Investment Plan.

Council Leader Heather Woodbridge, who chairs the Policy and Resources Committee, said: "Repurposing the vacant St Rognvald House property could present an innovative approach to dealing with the pressing issue of where and how we provide living space for those people who are coming to Orkney to provide additional capacity to our health and care workforce.

"Members at today's meeting were very pleased to see this report come forward. It is early days though and further detail will now be worked on by the project team – including an extended business case, final designs, planning requirements and a funding package – before it comes back in front of Elected Members at Stage 2 for their final approval."