Five new homes are to be built in Iona, Argyll and Bute Council has confirmed.
The investment will see the homes made available for rent upon completion.
It is thought they are the first homes for rent to be constructed on the island for more than three decades.
The development will consist of two three-bedroom and three two-bedroom terraced homes.
The project will be undertaken by the West Highland Housing Association, while additional funding of £426,000 has been provided by the Scottish Government, as well as £150,000 from Iona Housing Partnership and private finance of £227,000 from West Highland Housing Association. Argyll and Bute Council has set aside £361,000 for the development. The money has been made available through a Strategic Housing Fund grant and is in agreement with the local authority's community services committee.
Councillor Robin Currie, the council's Policy Lead for Housing, commented: "As an islander myself – I live on Islay – I can't emphasise enough the importance of affordable housing in attracting people to live on our islands, accommodating growing families and providing homes for incoming workers.
"The challenges and costs of building on Iona have been overcome through close partnership working between our housing team, West Highland Housing Association and Iona Housing Partnership, who have pulled out all the stops to get the funding package together. We are all absolutely delighted that this funding is going ahead."
Murray Sim, Chair of West Highland Housing Association, added: "West Highland Housing Association are delighted to have this opportunity to work with the Council and Iona Housing Partnership."
(JP/MH)
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