Housing / Work to get underway on first phase of Staneyhill housing in June
DITT Construction Ltd has been awarded the contract, with the total cost of the work coming to £9.7 million
HJALTLAND Housing Association says construction should start on 32 new homes at Staneyhill in Lerwick in June after securing approval from the Scottish Government to start the development.
Local firm DITT has been awarded the contract for the construction.
The development has a total works cost of £9.7 million and is being supported by the Scottish Government, Shetland Islands Council and the Bank of Scotland.
The association said the new development represents a “significant step in the Staneyhill project and provides much-needed affordable housing that will contribute to meeting local demand for high-quality, energy-efficient homes”.
DITT Construction Ltd has been appointed as the main contractor following a competitive procurement process.
The development is expected to commence in June, with an estimated construction period of just over two years.
This first phase will deliver 32 one-bed, two-person homes and is part of the larger Staneyhill site, which will eventually see around 300 new homes provided.
Hjaltland said the development will be built to high efficiency standards and is to be connected to the Lerwick District Heating network, helping to reduce energy costs for tenants while contributing to Shetland’s wider environmental targets.
Its chief executive Bryan Leask said: “We are delighted to be able to appoint DITT and make a start on the first new properties at Staneyhill.
“These new homes will make a real difference to people in Shetland by providing high-quality, affordable housing in a well-connected area.
“At a time when the construction sector continues to face significant cost pressures, driven by inflation, supply chain challenges, and increased material and labour costs, the support we have received from the Scottish Government and the Bank of Scotland is essential in helping us to deliver much-needed homes for our community.”
Liam Spence, director at DITT Construction, added: “We are pleased to have been appointed as the main contractor for this project and look forward to working closely with Hjaltland Housing Association to deliver these new homes.
“We are committed to delivering a high-quality development that benefits the local community.
“This project also allows us to continue to support the local supply chain and local workforce.”
The design team for this project include PJP Architects LLP, Mott MacDonald, and Hardies Chartered Surveyors.
The construction is anticipated to be completed in late 2028.
Hjaltland previously put out a contract for the construction of 60 properties at a cost of £9.8 million excluding VAT, but it failed to secure a preferred bidder when costs came back higher than anticipated.
The contract was then re-tendered for 32 units.
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