The Highlands could be on the cusp of a major new housebuilding programme, starting with 26 public sector homes in Inverness and the Black Isle.
Councillors have approved additional borrowing of £1.7million to build the properties at a derelict site at Raining’s Stairs in the city centre and in Munlochy.
There is optimism that recent talks between the council and the Scottish Government could signal the construction of many more badly needed new homes over the next few years.
Council leader Margaret Davidson said: “I’m really pleased. We’ve got the land, the planning and now we’ve got the financial plan coming together. We need now to be finding ways of ramping up our house building. There’s a real desire to do it.
“There has been a problem with land holding, persuading landowners to bring it forward.”
Having had recent talks with Housing Minister Kevin Stewart, she said the council was “poised to have a significant increase in house building”.
Allan Maguire, the council’s head of property partnerships, said the funding was based on a national housing trust model which had so far delivered 162 new mid-market properties.
The planning committee had already agreed part-funding from the authority’s landbank fund to build the homes.
The city and Munlochy sites will feature a mix of tenure – with 16 apartments at Raining’s Stairs and 10 homes at Munlochy.
More than a quarter of the properties will be rented through the council or a housing association.
Both projects will be developed by Ark Estates, the sister company of William Gray Construction, together with the Highland Housing Alliance (HHA) and the council.
Willie Gray said: “These housing projects will deliver a range of different homes to address a huge demand for housing in key areas.
“The Raining’s Stairs development will transform a derelict part of the city centre which has been an eyesore for years.”
HHA chief executive Gail Matheson said: “We’re delighted to be supporting projects which will help address a pressing need for housing in these two areas of the Highlands.”