Aberdeenshire Council considers closure of 17 sheltered housing units

Aberdeenshire Council is considering the closure of up to 17 of its 56 sheltered housing complexes as part of a region-wide review into the long-term financial viability of its housing and assisted living provision.
The proposed closures, affecting around 30% of the council’s sheltered housing stock, follow a reported decline in demand, as more older residents are choosing to remain in their own homes with support, rather than move into dedicated accommodation.
In a statement to The P&J, Ally Macleod, head of housing and building standards, said: “We are seeing more people live independently at home. As a result, demand for accommodation in some of our sheltered housing schemes has declined.”
The council is currently consulting with tenants, staff, and communities on two key options: reducing the number of schemes or implementing a significant increase in rent, potentially as much as 50%, to cover ongoing operating costs. The sheltered housing service is funded solely by tenants, and without intervention, it is projected to run at a £135 million loss over the next 30 years.
The consultation includes a comprehensive review of existing schemes, assessing their suitability, occupancy levels, and future investment needs. The findings will be used to inform a report presented to councillors for formal consideration.
Council officials have confirmed that no final decisions have been made. If closures do go ahead, the process would be phased and tailored to individual tenant needs. Sites identified as no longer viable may be decommissioned over a number of years.
Aberdeenshire Council has also noted the need to make broader savings across its services, including £20m in healthcare-related spending, increasing pressure to streamline underused or financially unsustainable facilities.
The review and associated discussions form part of a long-term strategy to modernise sheltered housing across the region and deliver services that are more responsive to the changing needs of older residents. According to the council, future investment will be focused on updating existing facilities and ensuring any remaining schemes meet contemporary accessibility and support standards.
A council spokesperson stated: “This has been a comprehensive review of all aspects of service delivery. We are speaking with tenants, staff and the wider community to inform future provision and ensure sustainable, high-quality housing for older people.”
Formal proposals, including any recommendations for closure or restructuring, are expected to be submitted to councillors following the conclusion of ongoing meetings and community consultations.