The first properties in Lerwick have now transferred to the new partnership that will manage private residential tenancies at mid-market rent in Shetland.
Shetland Mid-Market Homes LLP has taken ownership of six new one-bedroom properties on the North Road in Lerwick, after building work has been completed in recent months by DITT Construction Ltd.
Shetland Mid-Market Homes LLP was recently established as a partnership, formed between Shetland Islands 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. The Limited Liability Partnership (LLP) has been set up as an ‘arm’s length external organisation’ (‘ALEO’) to the Council.
There is small private rental market in Shetland and considerable pressure on the local housing market. The properties managed by the new partnership will be available to tenants on low to middle incomes, who may otherwise be unable to access social housing, or who can't afford to buy or rent properties at market rates.
Shetland Mid-Market Homes is now in the process of fitting out the properties and making them ready for occupation. More details will be available soon of the application criteria and process for prospective tenants.
Dennis Leask who Chairs the Council’s Development Committee said: “It’s great news to see the first properties now under the management of Shetland Mid-Market Homes LLP and I know there’s been a lot of work done to reach this point. These new homes, with the option for others in the future, will help us to diversify the local housing market and offer more housing options for people.”
Notes for Editors
- On 06 October 2025, Councillors agreed to establish Shetland Mid-Market Homes LLP and to provide funds of £752,200, plus an additional grant of £667,800 from the Scottish Government’s Affordable Housing Supply Programme (AHSP). More details are in the report on the Council’s Committee pages.
- Scottish Futures Trust Investments (SFTi) is an investment company that operates as a subsidiary of Scottish Futures Trust. More details can be found on the SFT website –www.scottishfuturestrust.org.uk/workstreams/housing