Progress made on plans for mid-market rent scheme

ANOTHER MILESTONE has been reached in plans to develop Shetland’s first mid-market rent scheme.

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

Shetland Mid-Market Homes LLP was recently established as a partnership, formed between Shetland Islands Council and Scottish Futures Trust Investments Limited (SFTi) 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.

Last year councillors gave their approval to provide £1.4 million to the ALEO for the properties.

This is split between £752,200 from the SIC’s second homes council tax reserve and £667,800 from the Scottish Government’s affordable housing supply programme.

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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 cannot 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 of the application criteria and process for prospective tenants.

SIC development committee chair Dennis Leask 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.”