Hjaltland Housing Association secures Scottish Government support for 32-Home development at Staneyhill

Hjaltland Housing Association has announced that it has secured approval from the Scottish Government to commence the development of the first 32 new homes at Staneyhill, Lerwick. 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 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.

Following a competitive procurement process, DITT Construction Ltd. has been appointed as the main contractor. The development is expected to commence in June 2026, with an estimated construction period of 27 months.

This first phase will deliver 32 one-bed, two-person homes and is part of the larger Staneyhill site, which will eventually see approximately 300 new homes provided to meet a range of housing needs, supporting individuals, families, and the wider community. 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.

Bryan Leask, chief executive at Hjaltland Housing Association, 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, & Hardies Chartered Surveyors. Construction is scheduled to begin in June, with completion anticipated in late 2028.

Background Information

The Staneyhill project is within the town of Lerwick where the demand for housing remains very high with approximately 60% of all housing applications for this area. Due to the existing topography and settlement pattern of Lerwick this site is considered the main location within the town that presents an opportunity to meet that demand.

Following consideration of the initial feasibility study a full masterplan was commissioned that included extensive public and stakeholder consultations using the Scottish Governments Place Standard Tool with the assistance of Architecture & Design Scotland. This ensured the surrounding communities and stakeholders could influence the design and help address the constraints that existed on the site.

The resulting masterplan produced a framework of documents relating to the site which have been formally adopted by the Shetland Islands Council as supplementary guidance to the Local Development Plan.

North Staneyhill Masterplan: Executive Summary

North Staneyhill Masterplan: Book 1 – Evolution of Masterplan

North Staneyhill Masterplan: Book 2 – Masterplan Framework

North Staneyhill Masterplan: Book 3 – Detailed Design Guidance

During the master planning process, it became apparent the site would be developed in distinct areas: The Bowl, The Plateau, The Escarpment, and The Terrace. The Staneyhill project is therefore a series of development sites which will be opened up following the construction of the main spine road and service infrastructure.

Full planning permission (2020/125/PPF) was granted for the first phase of housing, spine road and service infrastructure in 2021.

The design team is made up of Mott MacDonald providing civil and structural engineering services, PJP Architects LLP providing architectural and landscape design services and Hardies property and construction consultants providing quantity surveying services.

The lead consultant on the masterplan was Malcolmson Architects.