The development at 79 Academy Street will add to the regeneration of a gateway to the city centre to potentially deliver four commercial units on the ground floor with 40 affordable homes to rent for local people.

Under the plans, 17 flats will be allocated for mid-market rent by the Highland Housing Alliance and 23 flats to be allocated for rent by the council.

Highland Housing Alliance chief executive, Gail Matheson, said: “Today a planning application has been submitted to the Highland Council for a new mixed use development that will reinvigorate Academy Street, a historic gateway to the city centre. 79 Academy Street will be a landmark development for the city of Inverness, comprising 40 new homes for rent further opening it up to city centre living.

“The new scheme builds on the success of our 2016 Academy Street development that delivered 17 National Housing Trust homes along with 14 rented homes for the Highland Council. Four commercial units will potentially add new business opportunities and the regeneration of Academy Street. Subject to planning, we hope to start on-site in Spring 2018 with completion by Autumn 2019.”

Bill Nelson of Capital Developments said: “The building, previously tenanted by Farm Foods, has been unoccupied for quite some time and is no longer ‘fit for purpose’. Consequently, we are delighted to instruct our project architects NORR to submit a planning application to replace this building with a modern and attractive mixed use residential and retail scheme, that we believe will greatly enhance this part of Academy Street. If planning permission is granted we believe this significant investment will help revitalise the city centre.”

Councillor Allan Henderson, chair of the Highland Council’s environment, development and infrastructure committee, said: “This is good news for Inverness where there has been a shortage of affordable housing. The development is especially welcome given that it will contribute to regeneration of the city centre, providing new retail units on the ground floor as well as quality accommodation above.”