SSEN announces plans for 1,000 homes in north of Scotland – but none for Shetland … yet

SSEN has announced plans for 1,000 new homes in the north of Scotland – but none so far in Shetland.

The energy giant said it wanted to help alleviate the region’s housing challenges.

It is working with councils, registered social landlords and other housing organisations to deliver the new homes as part of its Pathway to 2030 programme – a £20bn investment to upgrade the transmission network in the north of Scotland in support of national net zero ambitions.

The first phase includes around 400 homes in Highland and a similar number in Aberdeenshire.

SSEN Transmission, which is developing plans for the Shetland 2 interconnector, providing another cable linking Shetland to the mainland, said “significant housing activity” had been planned elsewhere across its area.

“Further announcements with details of local housing projects in different council areas will be made in the coming months,” it added.

When asked whether it had plans for new homes in Shetland, SSEN said: “We’re working closely with the housing team at Shetland Islands Council and the housing association, Hjaltland, who entirely understand local housing need and we are working with them to ensure our approach fits with local need and demand.”

Senior figures at the SIC have previously expressed their desire for large scale developers to provide housing for their workforce to alleviate the additional pressures on the already constrained rental housing market.

Previous examples of similar practices include the Shetland Gas Plant, which led to the construction of the Moorfield Hotel in Brae, which was destroyed by fire in 2020.

The Sella Ness accommodation facility was also built for gas plant construction workers and went on to house contractors working at Sullom Voe Terminal as well as the Viking Energy windfarm.

But with the faciltiy’s planning permission set to expire next year, there are concerns that future infrastructure projects will put additional pressures on the limited rental accommodation available in Shetland. 

SSEN Transmission’s managing director Rob McDonald, said: “Our commitment to support the delivery of more than 1,000 new homes in the north of Scotland reflects ongoing work led by SSEN Transmission with the support of our contractors and partners, focused on finding workforce accommodation solutions that will provide a legacy for communities where the lack of housing for local people is a key issue.

“This is a significant and innovative contribution to addressing the housing challenges in the north of Scotland, and it also demonstrates how we can work in partnership to develop imaginative proposals that will deliver new homes and act as a template for other developers.

“Discussions are ongoing with local authorities, developers and registered social landlords over the location and scale of potential projects, and we expect to make further announcements in the coming months that will demonstrate substantial benefits to local communities.

“Our £20bn investment in the transmission network is the biggest investment programme the north of Scotland has seen in decades – and our ambition to create a housing legacy reflects our determination to make a lasting and positive contribution in the communities hosting our infrastructure.”

The Scottish government’s housing minister, Paul McLennan, said welcomed the move.

“These homes will initially be for workers upgrading the local energy infrastructure to support Scotland’s net-zero targets and will support a longer-term legacy across the region,” he said.

“We will work with SSEN Transmission and other partners to ensure that the right homes are delivered in the right place, to benefit local communities for generations to come.

“Good quality housing is essential to attract and retain people in our communities.

“We remain focussed on delivering 110,000 affordable homes across Scotland by 2032, with at least 70 per cent for social rent and at least 10 per cent in our rural and island communities supported by our Rural and Island Housing Action Plan.”

Carolyn Lochhead, director of external affairs at the Scottish Federation of Housing Associations, said members were looking forward to working alongside SSEN Transmission to provide  “much-needed homes” across the north of Scotland.

“The housing emergency has hit rural Scotland particularly hard and has exacerbated so many other existing challenges such as depopulation, labour shortages, and underinvestment in rural communities,” she added.

“This investment will be vital for communities across the north of Scotland and is a good example of collaborative working to increase the supply of housing.”