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SSEN Transmission has pledged more than £17m to deliver 50 new homes in partnership with Hebridean Housing Partnership (HHP) on Lewis.
The funding underpins the first phase of HHP's Melbost West social housing scheme, totalling 73 properties on a site beside MacKenzie Park to the east of Stornoway.
Under the plans, 23 homes will be available to local residents as soon as construction completes in 2029. The remaining 50 will be used to accommodate workers building critical grid infrastructure before joining the area's permanent social housing stock once SSEN Transmission's Lewis Hub and associated projects are finished.
During the build period, the 50 worker homes will provide a mix of one and two-storey semi-detached properties.
The Lewis Hub, which secured planning consent from Comhairle nan Eilean Siar last November, will connect the Western Isles to the GB electricity transmission network for the first time. SSEN Transmission says the project will deliver significant local economic benefits while contributing to national energy security and clean power targets.
The announcement advances SSEN Transmission's Housing Strategy, published in autumn 2024, which aims to help deliver 1,000 homes across the north of Scotland by aligning the company's accommodation needs with local housing provision.
On Lewis, complementary initiatives include support for up to 94 new affordable homes at the Stornoway Airport Housing Development at Branahuie, progressing proposals by local firm CalMax Construction with Tighean Innse Gall (TIG). SSEN Transmission has provided initial works funding and is in talks with TIG and CalMax about potentially financing construction.
The company is also backing the refurbishment of Stornoway's Caledonian Hotel, set to reopen for the first time in more than a decade as part of the Lewis Hub programme, and has made further housing commitments in the Highlands, Aberdeenshire, Moray and Angus.
Dena Macleod, chief executive of Hebridean Housing Partnership, said: "When SSEN Transmission first approached us with this project we were more than happy to work in partnership with them to deliver new housing because of the lasting benefit to island communities.
"The delivery of the major infrastructure projects brings short term benefits to affected communities but this time the benefit will remain for years after the project is completed. When SSEN Transmission no longer need the houses at Melbost West these homes will be made available for key workers, providing affordable rent or low-cost home ownership which should contribute positively to the work being done to boost our working population.
"By working together, we are ensuring that essential energy infrastructure leaves a lasting 'bricks and mortar' legacy for the islands – strengthening communities, supporting economic activity, and helping more people to access a secure, affordable home close to work, family and services."
Sandy Mactaggart, Director of Offshore Delivery at SSEN Transmission, said: "Today's announcement shows how upgrading the grid is about even more than achieving the country's energy security and clean power needs – it's also about a permanent housing legacy for local communities, as well as a range of other gains such as community benefit funding.
"And when it comes to this project, it's already starting – there will be new social housing for people as soon as the homes are built, as well as the 50 that will become available once SSEN Transmission's local projects are completed.
"Our work in the Western Isles and elsewhere is focused on finding mutually beneficial solutions that work for local communities, as well as for the construction of critical national infrastructure. In practical terms, that means providing lasting legacies, including the protection of local tourism by seeking to add capacity to accommodate our workforce – for example, funding new homes and bringing Stornoway's Caledonian Hotel back into use.
"A lack of housing for local people is a big issue in many of the communities we serve, and our housing strategy demonstrates how we are working in partnership with HHP and others to develop imaginative proposals that will deliver new homes and can act as a template for other developers."
