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Inverness rental crisis: 100 people fighting over every home

One city housing boss says it's the worst she has seen in 20 years.

Demand for houses in Inverness is growing
Demand for houses in Inverness is growing

A housing developer has revealed it receives as many as 100 applications for every property it builds in Inverness.

Highland Housing Alliance (HHA) says that across the Highlands there are up to 80 people chasing each house available.

Its chief executive says demand is the highest she’s known in nearly 20 years.

Why are things so bad?

A shortage of homes to rent or buy in the city has been keenly felt for some time.

The growth of short-term lets is an issue in some areas, with many people priced out of the market.

Demand is expected to increase with the Inverness and Cromarty Firth Green Freeport forecast to create more than 8,000 jobs.

Hundreds more posts could come from major infrastructure projects including planned hydro and power line schemes.

Highland Housing Alliance completed the regeneration of Merchant House in Castle Street.

HHA says more homes are “intrinsic to economic success”.

CEO Gail Matheson says: “Critical to getting more people living in the city centre is the availability of more rental homes.

“I have been at HHA for almost 20 years and I have never seen demand levels so high.

“On average, for every house that we have available for rent in Inverness, we attract up to 100 applications.

Who wants to live in these homes?

HHA generally deals in mid-market rent (MMR) properties.

They are a type of affordable housing usually found in larger city centres.

They often help people finding it hard to access social rented housing or buy or rent privately.

The homes are typically priced lower than private rent and slightly higher than affordable housing.

Tenants are commonly working young adults, aged between 25-34.

They include those employed in the NHS, emergency services and social care.

Gail Matheson says demand is the highest she has seen in 20 years

How can it be fixed?

HHA was set up in 2005 as a not-for-profit development company.

By the end of 2023, it had built 475 homes, helping to house more than 1,000 people.

Over the last six years, HHA has worked with Highland Council on six housing developments in Inverness city centre.

This has seen around 180 new homes in locations including Raining’s Stairs, Union Street, Castle Street, Church Street and Academy Street.

The council has also earmarked an empty site, previously occupied by Inverness College, for housing.

We revealed recently the Highlands needs to build an extra 24,000 houses in the next 10 years to meet current and future needs.

Highland Council has worked with the Highland Housing Alliance to build more homes in Inverness

Ms Matheson said as well as new builds, unused historic buildings can also be repurposed.

HHA and the council have restored Merchant House on Castle Street and the former Arnotts building on Union Street.

“Sympathetically restoring these iconic buildings has breathed new life into important city centre addresses and delivered new housing”, she said.

Tackling short-term lets issue

Inverness Central councillor Michael Cameron says Inverness has similar problems to Edinburgh and other places.

“Many properties are being snapped up by investors for short-term rental to tourists rather than for longer-term lets.

“While tourism and tourists are very welcome, we do need to strike a balance for the people who want to live and work in our city.”

He said council action includes varying council tax on second homes, consideration of short-term let applications and possible future use of a tourist tax.

City centre living: What’s it like to be in the heart of Inverness?

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