Scottish National Investment Bank helps develop Shetland’s first mid-market rental homes

28/11/2024
Credit: DITT Construction Ltd

The Scottish National Investment Bank (“the Bank”) announces a £730,000 investment in DITT Construction Ltd (“DITT”) to support the construction of six high-quality, one-bedroom homes in Lerwick.

The homes are being designed for key workers and young professionals who can often struggle to find affordable housing. Once complete, they will be the island’s first mid-market rental (MMR) properties, a key tenure of housing need identified by Shetland Island Council in its housing need and demand assessment.

The housing need in Shetland is a growing issue. Key workers, including NHS workers, have struggled to find affordable accommodation, and surveys have also shown young people are worried there is no future for them on the islands given the challenges with finding housing. 

DITT is developing the homes to be EPC B rated and linked to the local heat network. Once complete, the homes will be purchased by Shetland Island Council and rented out by the local authority.

Credit: DITT Construction Ltd

DITT is Shetland’s largest construction company and has been in operation for more than 50 years. In May of this year, the company transferred its entire shareholding into an employee ownership trust, a measure it hopes will help to retain the island’s construction sector talent.

Peter Tait, Managing Director of DITT Construction Ltd, said: “We are haemorrhaging talent and opportunity in Shetland due in part to the lack of affordable places for workers and young people to live. The loan facility from the Bank is enabling us to build what we hope are the first of many MMR 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.” 

DITT has also invested £400k into the MMR housing project.

Credit: DITT Construction Ltd

Alastair McMillen, Associate Director of Sustainable Investment, 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.”

The Bank is an impact investor, focused on delivering both commercial returns and tangible benefits to address some of Scotland’s most pressing challenges.

The latest stories

Edinburgh climbers to be ‘bould’ over by new world-class facilities
Scottish Government Minister backs calls for Scots to think local this Christmas
Fourteen new trains to drive first rail open access growth
CBI appoints new Scotland Director