Funding agreement reached for Inverness development

Funding agreement reached for Inverness development

The Highland Council has entered into a major funding agreement with SSEN Transmission to support the purchase and development of a strategically important site in Inverness.

The agreement includes a capital contribution of more than £2.7 million from SSEN Transmission, enabling the purchase and progress on a mixed‑use development at Longman - Harbour Road, designed to bring long-term community benefit.

SSEN Transmission will initially use the site as accommodation for workers for a period of five years, before handing over to The Highland Council. Opening the site for this purpose will give the benefit of installed site servicing which will improve the economic viability of the site for the council at the end of the lease period.

The purchase of the Longman, Harbour Road site will increase capacity for housing development, as part of a wider action plan to address the Highland Housing Challenge.

The site is earmarked for a blend of residential properties, mixed-use commercial and multi-tenure affordable homes. This combination is intended to support local housing needs while also contributing to the wider infrastructure improvements taking place across the city.

The council’s assistant chief executive (place), Malcolm MacLeod, said: “This major development represents a long-term investment in the future of Inverness, with affordable and low-cost housing forming a core element of the site’s purpose.

“The collaboration between The Highland Council and SSEN Transmission will ensure the land is brought forward in a way that enhances local infrastructure and benefits the community for years to come. Delivering a legacy for Inverness and much needed affordable housing to help tackle our Highland Housing Challenge, while stimulating economic growth both in terms of construction jobs and longer-term opportunities for permanent homes in an area of high demand.”

Under the agreement, SSEN Transmission is the funder, and The Highland Council is the project developer. Both parties have outlined clear roles and responsibilities, including the council’s commitment to planning consent, leasing the site to SSEN Transmission’s Tier 1 contractor, Balfour Beatty, and delivering the permanent development in line with agreed milestones.

Progress of the development includes:

  • Planning Consent issued in March 2026
  • Completion of site purchase - March 2026
  • Granting of a lease to SSEN Transmission’s Tier 1 Contractor for a five-year duration – April 2026

These milestones ensure clarity, accountability, and coordinated delivery.

Richard Jennings, SSEN Transmission’s housing strategy manager, said: “It’s important to us as that we leave a lasting legacy from upgrading the grid in the north of Scotland to help achieve the country’s energy security and clean power needs – and supporting the provision of permanent housing is a key aspect of that.

“Our partnership with The Highland Council in this exciting development will boost affordable housing and the local economy, helping more people to live and work in the area, and build their future there.”

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