Council / Council expects ‘high demand’ as it unveils new mid-market rental flats in Lerwick
Hopes the project will be first of many across Shetland in bid to tackle accommodation backlog
SIX brand new one-bedroom Lerwick flats will become available to rent in the coming weeks through the first phase of Shetland Islands Council’s mid-market rent project.
The state of the art lets, built by DITT Construction and set to be operated by arms-length organisation Shetland Mid-Market Homes, could welcome the first tenants next month.
People unlikely to gain enough points for council housing – but not earning enough to rent in the private market – are being targeted to take on the homes.
The only criteria for applying for the North Road properties are a connection to Shetland, and an income band of between £30,000 to £50,000 per household.
The six properties were unveiled at a media briefing this morning (Friday), with each flat coming with a double bedroom, large bathroom, outdoor storage area and white goods included.
Shetland Islands Council hopes the North Road flats will be the first in a portfolio of mid-market projects across the isles, which are aimed at tackling Shetland’s accommodation problems.
Shetland News was among those to be given a first look at the spacious properties on Friday, which also each include an outdoor storage area for things like bikes.
Councillor Dennis Leask, chairman of the council’s development committee, said he was “absolutely delighted” with the quality of the flats.
And the SIC’s senior project manager Craig Nicolson said the properties were “warm”, “modern and energy efficient” – with air to air heating included as standard.
“Big shoutout to DITT, they’ve done an excellent job,” he said.
“We’re hoping this could be the first of many. We’ve always said this is a test, pilot project, on a very small scale.
“We’re expecting demand to be through the roof for these ones. If it is high we want to expand the portfolio.”
The mid-market rentals come as an antidote to huge demand for council housing, and for the “very small” private rental market.
Nicolson and development director Neil Grant said it was estimated that just five per cent of Shetland properties were privately rented, less than half of the figure across mainland Scotland.
Grant said there were “a lot of people sitting in the queue for social housing” who were “never likely to get in” because they did not have enough points.
“It’s holding Shetland back economically,” he added.
Nicolson agreed, saying that people who were “stuck in the middle” between social and private housing were the target market for these new flats.
Rent for the mid-market properties is set to be £545 per month. Nicolson explained this sat between council rent – at around £390 per month – and an estimated £740 for private rentals.
Applications for the six one-bedroom flats are set to be sought in a fortnights time, with Nicolson expecting huge demand.
The first tenants could then move in either in March or April, he added.
He said it was a “double-edged sword”, with it likely there will be a “few disappointed people” when the flats are filled.
But Nicolson said that, if there is large demand, it will show support for mid-market rentals going forward.
Grant said that Shetland Mid-Market Homes, set up as an arms-length organisation from the SIC, was “generating interest in other areas of Scotland”.
Shetland Mid-Market Homes LLP was established as a partnership between the 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.
Councillor Leask said that Shetland was “among the first” in the country to do such a thing, but that it was likely to become a “more common model” in years to come.
He added they were “really thinking already” about where more mid-market homes could come from, with the Knab redevelopment cited as one potential option.
Nicolson agreed that the Knab was an “obvious” fit for the project, but added that “this concept can be done anywhere in Shetland”.
And Monique Hunter from the SIC’s housing team, who is also on the senior management of Shetland Mid-Market Homes, said it was not just new-build homes they were interested in.
“If there’s a property that’s available, we can take that on and build it into the portfolio,” she said.
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