The Bank has successfully completed its partnership with Lerwick-based DITT Construction Ltd (“DITT”), following the completion of six high-quality, mid-market rent homes in Lerwick.
DITT is Shetland’s largest construction company. It approached the Bank after identifying an investable opportunity and a community need. Shetland has the lowest percentage of privately rented homes in Scotland, making up just 5% of its total housing tenure, which regularly prices key workers out of accommodation on the islands.
The Bank loaned DITT £730,000 in November 2024 to support the company to build of Shetland’s first mid-market rental properties, designed for key workers. Mid-market rent is a form of affordable housing that delivers high-quality rental property for less than the private market, but higher than social housing rents.
Just over one year later, the homes are now complete, the loan has been repaid, and the homes have been purchased by the Shetland Island Council, which recently set up a new arms-length organisation to rent out and manage the properties. This was a pilot project for the council, which may deliver more mid-market tenure in the future.
DITT moved to an employee-owned model in 2024, after more than 50 years of operation. The company has developed projects like this to retain construction sector talent on the islands and address the local housing shortage. The company also invested £400,000 into the Lerwick construction project alongside the Bank.
Rebecca Currie, Senior Associate of Investment Origination at the Scottish National Investment Bank, said: “Shetland is at the forefront of twin challenges, a housing shortage and population decline. This investment helped address both by introducing a new tenure, increasing housing supply while targeting the needs of key workers who can find housing costs a prohibitive barrier to living on the islands.
“This is a fantastic example of how we work with businesses that identify needs and opportunities in their communities. It has been a rewarding project to be part of and I’m so pleased to see these homes being rented out to the workers who need them.”
As an impact investor, the Bank’s investments are focused on securing long-term, commercial returns as well as delivering social impact for Scotland. The investment in DITT was aligned to the Bank’s place mission, which aims to transform communities and help people thrive.
