Contractors sought to build 60 new homes in deal worth £9.8m

The North Staneyhill construction site pictured in November. Photo: Shetland Flyer. 

Contractors are being sought to build 60 new homes in a deal worth almost £10m.

Hjaltland Housing Association launched the tender process for the first two phases of housing in its North Staney Hill development in Lerwick.

“The works comprise the construction of 60 new build properties of timber kit/blockwork construction with a variety of blocks of flats and two storey houses,” Hjaltland said.

It represents the first housebuilding in the ambitious masterplan led development, which will eventually comprise 300 homes.

Contractors first moved onto the site in December 2023 to begin work on the infrastructure which will underpin the development.

The work, which included rock breaking in the hillside and the creation of a new spine road, was led by main contractor Garriock Bros,

It was funded with £19m of Scottish government money.

Earlier this year, Hjaltland chief executive Bryan Leask said he had been struggling to find contractors to take on the next phases.

According to the contract notice, the work is expected to take almost four years to complete.

The first of the homes could be ready by 2028.

Overall, the 300-home development is likely to take around 15 years to complete.