Shetland-based Hjaltland Housing Association has secured £20m in funding from the Scottish Government’s Housing Infrastructure Fund to build 300 affordable homes at Staneyhill in Lerwick, Scotland.

The Bute House Agreement involves the plan to construct approximately 110,000 affordable homes in the town by 2032.

Out of this figure, 70% of the housing units will be available for social rent, and 10% will be in Scotland's remote, rural, and island communities.

Hjaltland Housing Association CEO Bryan Leask said: “Accessing the Housing Infrastructure Fund was essential due to the constraints on the site, and we greatly appreciate the commitment from the Scottish Government in supporting us with this funding.”

With this funding, works on the project will start this year.

The association said that it is also developing housing schemes through the government's Affordable Housing Supply Programme at Scalloway, Aith, Brae, and Walls in Scotland.

Scotland's Minister for Housing Paul McLennan revealed the news of this funding during a tour to the Highlands and Islands region of the country.

McLennan said: “High-quality, highly energy-efficient and affordable housing is a key pillar of tackling these issues and this project will be a big step in working towards removing those barriers locally.

“Our rural and island communities play an essential role in our economy, and we will continue to support the delivery of more affordable housing to keep people in these areas and attract others to live there.”