Community / Initial work on large Lerwick housing development could start in spring

An image of phase one from PJP Architects.

THERE are hopes that workers could be on site of the proposed new large housing development at Staney Hill in Lerwick in April or May.

A tender has now been issued by Hjaltland Housing Association for preparatory work including site clearance, rock excavation and groundwork.

The 30-month contract, valued at £7.5 million excluding VAT, also includes landscaping, providing access roads, pavements, water and power to enable the construction of the new housing.

It will also focus on the installation of a main spine road and a green corridor.

What phase one could bring. Image: PJP Architects

It is envisaged the rock on site will be excavated by low level blasting to minimise the impact on surrounding buildings.

Hjaltland Housing Association chief executive Bryan Leask said the tender going out was “great news”, with a hope to be on site in the spring.


A planning application for the first phase of development, which would include over 120 homes, was submitted to Shetland Islands Council last year.

The overall development could see up to 350 affordable homes built in phases over 10 to 15 years.

Most of the new homes will be rental accommodation but the site will also provide opportunities for those who wish to move into low cost home ownership via shared ownership/shared equity housing and rent-to-buy properties.

Phase one, which is expected to be completed by the summer of 2025, is being overseen by architects PJP and engineer Mott MacDonald.

With the support of the Scottish Government Hjaltland acquired the site on the north side of Staney Hill in 2015.

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.



Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.