Work begins on first £19m phase of 300-home development 

Work on the largest housing development this decade has begun today (Monday) with help from a £19m government grant.

Hjaltland Housing Association said it was “delighted” to see the start of its 300-home North Staneyhill project in Lerwick.

The first phase, which includes a new spine road to enable services and the future housing construction, is expected to take three years.

Designed by Mott MacDonald and PJP Architects, the main contractor is Garriock Bros. Ltd.

Hjaltland chief executive Bryan Leask said: “I am absolutely delighted to finally see work start on site.

“The Scottish government has provided over £19m in grant funding through the infrastructure fund for this project as part of the strategic housing investment plan for affordable housing in Shetland.”

Hjaltland lodged plans in September, which outlined timetables for extracting around 75,000m³ of rocks to pave the way for the new road and platforms for the housing.

Committee chairman Colin Nicholson said it was “great to see work starting”.

“The new infrastructure will not only enable the construction of 300 new homes but also connect areas of Lerwick from North Loch Drive to Staneyhill Road and Wista,” he added.

The development is set to play a key role in the SIC’s overall housing strategy for the next decade – but has been delayed by a number of setbacks.

It took three tendering attempts and a significant price hike to secure a contractor, after initial efforts in 2020 failed to attract any interest.

The SIC’s leader Emma Macdonald added: “I am really pleased to see this work on the Staneyhill finally getting under way, after the earlier work done on the strategic plans for the site.

“It is vital we increase the number of modern, affordable homes in Shetland and this development will substantially help that.

“Supporting the growth of our local communities and our future economic activity”.

Garriock’s contracts director Arthur Robertson, said: “We are pleased to be undertaking this project for Hjaltland Housing Association, providing much needed sites for future housing in Lerwick.

“This scheme has its own set of challenges which we will endeavour to meet using our skilled workforce and experience gained over the previous 40-plus years of working in the Shetland construction industry.”

It is anticipated construction on the first phase of housing – called the Terrace – will commence 18-months into the infrastructure contract.

A total of 66 new homes will be built along North Loch Drive and will be a variety of one-bedroom, two-bedroom and three-bedroom properties.

The development will also feature a “green corridor” and two further phases of housing.

In total, more than 300 home are expected to be delivered through the masterplan-led project, with construction taking place until 2030.


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