Albany Court, Fraserburgh

We understand the concerns raised and appreciate the opportunity to provide clarity on the current situation.

It is true that the financial challenges facing Sheltered Housing have developed over time. This is precisely why a review of the service began in 2018—to assess its long-term sustainability and ensure it continues to meet the needs of older people in Aberdeenshire. The review identified that the service was not operating on a full cost recovery basis and that significant capital investment would be required to modernise many of the schemes.

Since then, the situation has been further impacted by rising construction costs, inflation, and a decline in demand for traditional sheltered housing—particularly following the pandemic. These pressures have brought us to a point where difficult decisions must be considered to protect the Housing Revenue Account (HRA), which is a ring-fenced budget used solely for housing services.

We want to be clear: Sheltered Housing is not expected to make a profit. However, it must be financially sustainable to ensure we can continue to provide safe, appropriate housing for all tenants. If we do not act now, the financial strain could affect the wider housing service and limit our ability to maintain and improve homes across Aberdeenshire.

Regarding the suggestion of using unallocated Council reserves—these are limited and earmarked for a wide range of essential services. The HRA is legally separate from the Council’s general fund, and using reserves to subsidise it is not a sustainable or permitted long-term solution.

We also want to emphasise that no final decision has been made to close any scheme. Proposals are still under consideration and will only proceed following a decision by the Communities Committee. If any changes are approved, they will be carefully managed, and tenants will receive full support throughout the process.

We remain committed to treating all tenants with dignity and respect and to ensuring that any decisions are based on evidence, financial responsibility, and the long-term wellbeing of our communities.

Thank you for your detailed and thoughtful questions. We appreciate the opportunity to clarify the current position regarding the sheltered housing property and its future use.

1. Ownership and Housing Revenue Account (HRA) Status

All sheltered housing properties, are held within the Housing Revenue Account (HRA). As such, they are managed as part of the council’s housing stock and subject to the same legal and financial frameworks as other council-owned housing.

2. Requirement for Scottish Government Approval

There is no requirement to seek specific approval from Scottish Ministers for disposal, though councils must still act in accordance with statutory duties and local governance procedures.

3. Title Deed Restrictions and Land Donations

We are aware that in some cases, land for sheltered housing developments was donated to the Council, and this may include title burdens or restrictive covenants. These could potentially limit the future use of the property—for example, requiring it to remain in use for sheltered housing or community benefit.

4. Tenancy Rights and Eviction Grounds

Tenants in sheltered housing typically hold Scottish Secure Tenancies (SSTs). These tenancies offer strong legal protections, and eviction can only occur under specific grounds set out in legislation—such as if the property is due to be demolished or repurposed, and suitable alternative accommodation is offered.

It’s important to clarify that no final decision has been made regarding the future of Albany Court or any other scheme at this stage. The proposal to include Albany Court in the review was only made after data collection and analysis were completed earlier this year.

With regard to the recent upgrade works, these were part of planned maintenance and improvement programmes that are typically contracted and, procurement processes can take several months to complete. These decisions are made to ensure that all properties continue to meet required standards and remain safe and comfortable for residents, regardless of any future proposals.

The timing of the review and the upgrades is coincidental, and while we understand the concerns this may raise, it’s important to note that the review process is ongoing and no outcomes have been determined yet.

We understand the concern around how and when tenants may learn about the final decisions regarding the future of sheltered housing schemes, including Albany Court.

The final decision is scheduled to be made at the Aberdeenshire Council Communities Committee meeting on 4th July. As with all council committee meetings, this session will be publicly accessible and may be broadcast or reported on by local media, in line with standard transparency practices.

We fully acknowledge the sensitivity of this issue, particularly for tenants and families who may be directly affected. It is not our intention for anyone to learn about decisions for the first time through the media. To address this, the council is putting in place a communication plan to ensure tenants are informed directly and compassionately with regards to any recommendations to be put to committee and as soon as possible following the committee’s decision.

We are committed to treating all residents with dignity and respect throughout this process and will continue to provide support and clear communication at every stage.

Albany court along with all but two of the Sheltered Housing schemes does not balance the books and requires to receive subsidies from the HRA. The scheme has a substantial negative Net Present Value driven by high levels of capital investment required along with challenges in letting a high proportion of the properties in the main block. 

The review of Sheltered Housing takes into account the future housing needs of Aberdeenshire’s ageing population, with plans in place to upgrade the remaining schemes to ensure they meet the required standards. Aberdeenshire Council currently holds 10% of all Sheltered Housing stock in Scotland, making it the largest provider in the country. Even with the closure of some schemes, the Council will continue to maintain a substantial and well-supported portfolio of housing options for older people.

No decision has been made regarding the potential closure of Albany Court. Should a decision to close be taken, the process of supporting tenants to find suitable alternative accommodation will take several months, if not years, and will be carried out in a fully supportive and person-centred manner. As such, no decisions have been made about the future use of the building at this stage.

Additionally, it is important to clarify that the responsibility for sourcing and managing accommodation for migrants lies with the Home Office, not the local council.

The data analysis methodology has been consistent across all 17 schemes, utilising occupancy levels from the past 10 years for evaluation. In the case of Albany Court, several properties were identified as low demand, with no interest from prospective tenants at the time of analysis (10 December 2024). At that point, there were eight vacancies. As such, the allocation of the five additional properties, along with the existing seven vacant units, is unlikely to significantly impact the overall scoring.

We are committed to working closely with tenants, listening to their needs and preferences, and providing support in exploring alternative accommodation options should a decision be made to close Albany Court. There is no urgency for tenants to move until suitable and preferred alternative housing has been identified. We fully acknowledge the emotional difficulty of this situation and are dedicated to managing any transitions with sensitivity and comprehensive support.