The site will develop a variety of mixed tenure homes for rent and private use, on the Association’s recently acquired site at Upper Achintore.

The grant, awarded through the Scottish Government’s Affordable Housing Supply Programme supports the government’s ambitious commitment of delivering 50,000 affordable homes including 35,000 for social rent by 2021.

On a visit to the area yesterday, housing minister Kevin Stewart said: “We recognise the challenges of developing affordable housing in rural areas, so I’m delighted that our investment will help to make affordable housing a reality at this site.

“This grant will support the delivery of at least 200 new homes in Fort William and is a great example of how partnership working can deliver a range of homes to suit the needs of the local community.

“Increasing the supply of affordable homes across Scotland is a key commitment and vital to our ambition of tackling poverty and inequality in our society.”

Blair Allan, director of Lochaber Housing Association, said: “The Association has already built around fifty much needed homes for social rent at Upper Achintore in the last few years. However, this Scottish Government grant takes our potential investment in affordable housing here to a new level. Everyone knows that housing need in Fort William is intense.

“The opportunity here is that we can, in partnership with the Scottish Government, the Highland Council and others, go a significant way towards satisfying this need in the short to medium term. We are grateful to the Scottish Government for this support and for the confidence that it has shown in our ability to deliver.”

Councillor Allan Henderson, chair of The Highland Council’s places committee, added: “This is good news for Lochaber where there has been a shortage of affordable housing. The development is especially welcome given the regeneration of the Fort William Smelter and the new job opportunities coming to the area. It comes on top of the recent welcome Scottish Government investment which has enabled the Council and their partners to deliver new affordable homes in Tweeddale Apartments, Raasay Court and Belhaven Drive.”