Shetland Mid-Market Homes LLP has taken ownership of six new one-bedroom properties on the North Road in Lerwick, after building work has been completed in recent months by DITT Construction Ltd.

Established in October last year, Shetland Mid-Market Homes LLP is a partnership formed between Shetland Islands Council and Scottish Futures Trust Investments Limited (SFTi), an investment company that operates as a subsidiary of Scottish Futures Trust, to deliver private residential tenancies as an affordable housing option in Shetland.

Scottish legislation prevents local authorities from operating as a landlord to offer private residential tenancies. The Limited Liability Partnership (LLP) has been set up as an ‘arm’s length external organisation’ (‘ALEO’) to the council.

There is a small private rental market in Shetland and considerable pressure on the local housing market. The properties managed by the new partnership will be available to tenants on low to middle incomes, who may otherwise be unable to access social housing, or who can’t afford to buy or rent properties at market rates. 

Shetland Mid-Market Homes is now in the process of fitting out the properties and making them ready for occupation. More details will be available soon on the application criteria and process for prospective tenants.  

Dennis Leask, who chairs the council’s Development Committee, said: “It’s great news to see the first properties now under the management of Shetland Mid-Market Homes LLP and I know there’s been a lot of work done to reach this point. These new homes, with the option for others in the future, will help us to diversify the local housing market and offer more housing options for people.”