New house building model

The Highland Council’s Housing and Social Work Committee has unanimously agreed to investigate the feasibility of embarking on a new council house building programme.

The plan is to lease or transfer council houses as they become vacant to a private sector partner in return for a capital payment.  The capital would be used to build new houses for let as Council tenancies. The Council would continue to allocate, manage and maintain the leased houses, based on agreed fees per unit to be paid to the council by the partner.

It is hoped that 650 new council houses could be built over a five-year period using this model.

The leased houses would be relet to applicants on the Highland Housing Register at rent levels pitched between the average council rent and private rents, currently estimated at an average of £75 per week (charged over 52 weeks).  The average council rent for the current financial year is £59.76 (over 52 weeks).

Properties would revert to Council ownership at nil cost after 25 years. 

Councillor Margaret Davidson, chairman of the Housing and Social Work Committee, said: "Members welcomed the initiative and look forward to seeing details in a Business Case."