Hjaltland Housing Association has announced the completion of 11 new homes in its scheme at Hill Grind in Lerwick, with tenants in the process of moving in.

The housing association has also awarded contracts for the construction of a further 24 units in Tingwall and 27 in Lerwick.

The commitment to these projects results in a total investment of £10.4 million in the local economy, with £6.8m in grant provided by the Scottish Government and £3.6m of private finance.

Housing Minister Kevin Stewart said: “I am delighted to see these high quality, affordable new homes, supported with over £6.5 million Scottish Government funding. It highlights the importance of partnership working between the Housing Association, Shetland Islands Council and the Scottish Government to ensure we deliver the right homes, in the right places, for both individuals and communities.

“Scotland’s islands make a huge contribution to Scottish life but we know people living there can face challenges when it comes to accessing the home they want. That is why we have introduced dedicated £5 million Islands Housing Fund, to supplement the £25 million Rural Housing Fund, which will increase the supply of good quality affordable housing and help to attract and retain people in our islands.

“We are committed to delivering at least 50,000 affordable homes across Scotland over the course of this Parliament. By providing higher than average grant rates to these developments, along with our dedicated support for Islands housing, we are demonstrating our commitment to delivering the right type of affordable housing in locations where it is most needed.”

Hjaltland Chief Executive Bryan Leask said: “These three projects are part of the Associations ongoing drive to help meet the housing needs of Shetlands communities. They will also provide a welcome economic boost to local contractors and the wider supply chain. We do however understand that there is still more to do and were delighted when our masterplan for Staneyhill was recently adopted as council policy. It is early on in the design process for our Staneyhill project but it shows the long term commitment we have to helping house the people of Shetland.”