Housing / Mid-market rent scheme receives £730k support from national investment bank
A SIX-HOME mid-market rental scheme being constructed in Lerwick has benefitted from a £730,000 investment from the Scottish National Investment Bank.
The units would be purchased and rented out by Shetland Islands Council – with the homes designed for key workers who may struggle to find affordable accommodation in Shetland.
The one-bedroom homes are being constructed on Lerwick’s North Road by local firm DITT, which has invested £400,000 itself into the scheme.
Mid-market rent has not been used locally before and it could potentially provide a housing solution for people who tend to be priced out of the buying market, but are unable to demonstrate the level of housing need to secure a social rent.
It is generally described as properties available to be rented by households on low to middle incomes, with costs lower than the private rental market.
It is thought that a range of key workers would be among those likely to apply.
The SIC’s development director Neil Grant said this week the council is working on an operating model with potential for “market rent and market sale”.
He told a meeting of the SIC’s development committee on Wednesday a report is expected to come before elected members next year to seek approval to establish an arms-length organisation for the initiative.
“We’re working through what that arms length organisation needs to be and the business model for it,” Grant said.
DITT managing director Peter Tait meanwhile welcomed the support from the Scottish National Investment Bank.
“We are haemorrhaging talent and opportunity in Shetland due in part to the lack of affordable places for workers and young people to live,” he said.
“The loan facility from the bank is enabling us to build what we hope are the first of many mid-market rent developments.
“Our move to employee ownership was motivated in part by our desire to ensure we could continue to provide long-term employment opportunities, including our annual intake of apprentices.
“We know all-to-well the housing challenges workers face, and we are committed to being part of the solution and brining tangible benefits to our community.”
The Scottish National Investment Bank is a development investment bank established and funded by Scottish ministers on behalf of the people of Scotland.
Development banks seek to invest where the private sector is not providing sufficient investment to businesses or projects that support the development of the economy.
Alastair McMillen, associate director of sustainable investment at the Scottish National Investment Bank, said, “This project is a strong example of our commitment to our place mission, which aims to transform communities and help people thrive.
“We were particularly attracted to DITT’s move to an employee ownership model and its commitment to addressing local problems, both of which resonate with us as an impact investor.
“Members of a community are best placed to know what they need to support a thriving environment. Our role is to provide them with the means to realise their ambition and unlock multi-fold community benefits.”
Become a member of Shetland News
Shetland News is asking its many readers to consider paying for membership to get additional features and services: -
- Remove non-local ads;
- Bookmark posts to read later;
- Exclusive curated weekly newsletter;
- Hide membership messages;
- Comments open for discussion.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.
Already a member? Sign in to hide this message.
