‘Alarm’ and ‘concern’ after Knab housing plan slips back two years

An image of what housing in the Knab might look like. Image: 7N Architects.

Councillors have sounded the “alarm” at cuts in affordable housing funding which have forced a two year delay to the Knab development.

Shetland Central member Moraig Lyall said housing was “key” to the SIC’s aspirations – and so it was “alarming” to see “push back” from those providing the funding.

Mrs Lyall was speaking at today’s policy and resources committee meeting after development director Neil Grant provided a revised timeline for the Knab redevelopment.

Following a 61 per cent reduction in “resource planning assumptions” by the Scottish government, equivalent to £16m over five years, Mr Grant said the first phase of housing would be delayed by two years and will no t now begin until 2027/28.

Given the cuts Mrs Lyall said it was difficult to see how the council would make progress in its housing ambitions. 

“This is really not good news at all,” she said.

Mrs Lyall noted how the Knab and North Staneyhill had been held up as the solution to Shetland’s housing challenges – and yet now both schemes were under “severe pressure”.

She urged the council to make the most of any other funding opportunities for housing and “grab them with both hands”.

Political leader Emma Macdonald shared Mrs Lyall’s concerns – although she suggested there could be some improvement in the financial situation following the Scottish government’s budget announcement on Wednesday.

Depute leader Gary Robinson said there were further concerns that the funding awarded for the project through the Islands Growth Deal had been diminished by inflationary pressures over the years.

Development chairman Dennis Leask said housing highlighted as a priority at every meeting the council held – and the lack of was “at the foot of most of our problems”.

The revised timeline has also outlines plans to covert the Janet Courtney Hostel into housing, at a cost of almost £5.6m, which is now  expected to commence in January 2026.

The Anderson Educational Institute had been set to become a “creative hub”, potentially using £3m of Islands Growth Deal funding.

However, the council said it was “increasingly clear” the building would be “less than ideal” for this purpose.

Another retained building in the former Anderson High School – Bruce Hostel – has not been identified for future use but could soon go up for sale.

The SIC has applied to the Court of Session to enable its change of use and expects a decision shortly