UHI Shetland Abandons Knab Student Accommodation Plans

The University of the Highlands and Islands (UHI) Shetland has decided to discontinue plans for student accommodation at the Knab development site in Lerwick. Concerns regarding the project’s viability have led to a strategic shift, with UHI Shetland now focusing on reinstating the top floor of its Port Arthur House accommodation unit in Scalloway instead.

UHI Shetland principal and CEO Professor Jane Lewis confirmed that the college had explored various options for student accommodation, including a proposal for a creative hub at the former Anderson High School site. However, she stated that both avenues have been ruled out due to financial uncertainties. “We’re still keen to develop student accommodation, but we will not be doing that at the Knab,” Lewis told Shetland News.

Concerns about the sustainability of the project were echoed by Stephen Leask, chair of the UHI Shetland board, who described the student accommodation initiative as “unfundable.” With the current financial climate, Leask noted that while they could seek funding to initiate the project, sustaining it long-term would be challenging.

The Knab site has been incorporated into a broader masterplan by Shetland Islands Council (SIC) for redevelopment, primarily focusing on housing. Initial discussions had suggested that the Janet Courtney Hostel, one of the few buildings retained on the site, might be repurposed for student accommodation. Instead, plans have shifted towards converting it into residential flats. The site’s historic Anderson Institute was also earmarked for a creative hub; however, councilors were informed late last year that this project was deemed “unsustainable.”

UHI Shetland’s decision to withdraw from the Knab project reflects ongoing financial challenges. A report from a recent SIC audit committee meeting revealed that the redevelopment will receive up to £9.6 million from the Scottish Government as part of the islands growth deal, with £3 million allocated for a creative hub and £500,000 for student accommodation. The bulk of the funding is intended for housing developments.

As part of its revised strategy, UHI Shetland is working on a business case to restore the upstairs of Port Arthur House, which previously accommodated nearly 30 students before its temporary closure in 2018 due to structural issues. The goal is to upgrade the building to meet net-zero standards, with Lewis noting that there is currently “nothing” on the upper level.

In addition, a planning application to convert the upstairs of Port Arthur House into office space was withdrawn following objections from the SIC’s roads department. Previous plans for a student accommodation building on Lerwick’s Commercial Road have also not materialized.

Development timelines for the Knab project have been adjusted in light of reduced government funding. Earlier this year, the contract for core infrastructure works was awarded to local contractor Tulloch Developments Limited, and construction is already underway.

The council has now prioritized the revamp of the Janet Courtney Hostel, which is expected to commence soon. Interestingly, a recent U-turn by the Scottish Government has increased the affordable housing funding budget allocation for Shetland. In another development, local company Ocean Kinetics has successfully secured a bid for the Bruce Hostel, one of the remaining listed buildings on the site, with plans to convert it into flats.

The UHI Shetland board’s decision to pivot away from the Knab site for student accommodation underscores the complexities of educational infrastructure development amid financial constraints. As the council presses forward with its housing initiatives, the future of student accommodation in Shetland remains uncertain, though UHI Shetland is determined to find viable solutions moving forward.