Council asked to approve £6.3m boost to Landbank Fund

Members will be asked to approve the repayment of £6.308m to the Landbank Fund from income from Council Tax on 2nd homes, at the Highland Council meeting on 31 October. The additional money will support the Council in finding solutions to the Highland Housing Challenge.

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 £6.308 million 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 3 years of the flexibility being exercised.  

Through its budget plans, the Council has made provision for repayment back into the Landbank Fund, this through a combination of budget provision 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.