The additional money will support the council in finding solutions to the Highland Housing Challenge - one of six new commitments agreed during the Housing Challenge Summit earlier this week.

Chair of the council’s Economy and Infrastructure Committee, Cllr Ken Gowans, said: “The Landbank Fund is a valuable mechanism which allows us to invest further in housing supply in the Highlands. The additional £6.308m will boost our capacity to bring housing back into communities and help to address the housing challenge.”

The Highland Council has in recent years sought flexibility to the council to utilise income from council tax on second homes to support the revenue budget.

Scottish Government granted flexibility to the council to utilise income in 2022/23 and 2023/24 to support the revenue budget, rather than for affordable housing purposes, given the financial challenges being faced by the council at that time. That flexibility was however conditional on repayment of income into the Landbank Fund within three years of the flexibility being exercised.

Through its budget plans, the council said it has made provision for repayment back into the Landbank Fund, through a combination of budget provisions made in 2024/25 and reserves earmarked for this purpose.  In total, the sum due to be paid back is £6.308m covering the two financial years.