Leader of the Highland Council, Councillor Drew Hendry, has described the Scottish Government's plans to inject £44m into affordable housing as "fantastic news for the Highlands".

In an effort to accelerate house building and keep rent levels affordable, the Government is to increase the grant for every new council and housing association property by £16,000 per house.

He said: "This announcement is fantastic news for the Highlands. We have been highlighting the issue of grant rates with the Scottish Government, and so we are really pleased that the Government has listened and acted on these concerns.

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"The increased grant levels mean that we will be able to continue and extend our ambitious Council house building programme. It should also enable our housing association partners to increase in size their development programmes and for some associations to start developing again. This will enable additional housing investment in the Highlands, and boost the local construction sector.

"Current council tenants should be delighted that these grant rates will enable us to build with minimal impact on general rent levels. People on the Highland Housing Register should also be reassured that this will help the Council and our partner housing associations to provide greater opportunities to meet their housing needs. All round this is excellent news for the Highlands."

(JP/CD)