Orkney Islands Council has reached a significant step in its plan to demolish the former Papdale Halls of Residence in Kirkwall, with elected members this week agreeing to award the contract for the works.

Further details of the contract, including the successful bidder, will be announced in due course.

An outline business case for demolition was approved in 2025, followed by a programme of surveys, investigations and procurement. Building warrant and planning permissions for the demolition are now in place.

Work on site is expected to start in January next year, with completion targeted for spring 2028.

The building, largely unused since 2013 aside from a nursery area, will be cleared to unlock future housing in the centre of Kirkwall.

The Council's Local Housing Strategy (2024) sets a target of 1,030 new homes over ten years, with a 60/40 split between affordable and private housing. Delivery will require innovation, collaboration and finance, and is expected to involve the Council, Orkney Housing Association Limited (OHAL), Places for People Scotland, Development Trusts and private sector developers.

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In December 2025, the Council entered a landmark partnership with Places for People (PfP) Scotland to deliver up to 500 new homes over the next decade, making it the first national housing association to build in the islands.

It is anticipated that up to 60 affordable homes could be developed on the Papdale site by Places for People Scotland, with any sale subject to separate commercial and legal processes and any development requiring a separate planning process.

Councillor Sandy Cowie, Chair of the Council's Policy and Resources Committee, said: "Today's decision marks another important step in tackling the housing challenges facing Orkney. The former Papdale Halls has stood largely empty for more than a decade and, while demolition is a significant investment, it will unlock a strategically important site in the heart of Kirkwall for future housing development.

"Providing more homes remains one of the Council's highest priorities. We know the shortage of affordable housing affects families, young people, essential workers and businesses across our islands, and increasing housing supply is essential if we are to support strong, sustainable communities and a growing economy.

"By approving the demolition, we are removing a long-standing vacant building and preparing the way for the potential development of up to 60 affordable homes through our partnership with Places for People Scotland. While further legal, commercial and planning processes will be required before any housing development can proceed, this decision demonstrates the Council's commitment to working with partners to increase the availability of much-needed homes in Orkney."