A new partnership that will manage private residential tenancies at mid-market rent in Shetland has been transferred its first properties.
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.
The organisation 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 local authority, Shetland Islands Council explained.
There is small private rental market in Shetland and considerable pressure on the local housing market, it added. 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.
Dennis Leask, chair of the Shetland Island 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.”
