The Highland Council has restated its commitment to addressing the region’s housing challenge, setting out a long-term approach to expand supply, deliver affordable homes and ensure communities have the right mix of housing to support future economic growth.

A report presented to the Housing and Property Committee on Wednesday 4 November brings together three cornerstone documents: the Local Housing Strategy 2023–2028, the Strategic Housing Investment Plan (SHIP) 2027–2032 and the latest Housing Need and Demand Assessment (HNDA). Together, they provide a clear picture of current and future need across Highland and set out actions to help people access affordable, suitable homes where they want to live, work and study.

Housing and Property Committee Chair, Cllr Glynis Campbell-Sinclair, said: "Housing remains one of the biggest challenges facing Highland and is fundamental to sustaining communities, supporting economic growth and ensuring people can continue to live and work in the places they call home.

"Over the past four years, more than 1,800 affordable homes have been delivered across Highland through the Council, and our housing association partners of which Highland Housing Association (HHA) is one of our most successful partners in delivering homes. While this represents significant progress, the latest evidence shows that demand continues to outstrip supply.”

"The Housing Need and Demand Assessment estimates that around 31,848 homes will be required across Highland over the next 20 years. Meeting that need will require continued investment, strong partnerships and a collective focus on increasing housing supply across all tenures.

-- Advertisement --

"Housing is about far more than building homes. It plays a vital role in tackling poverty, improving health and wellbeing, enabling independent living and supporting the workforce needed for Highland's future economic growth.

"Through our Strategic Housing Investment Plan, Local Housing Strategy and Highland Housing Challenge, we are working with partners to deliver more homes, bring empty properties back into use, attract investment and create thriving, sustainable communities across Highland."

Over the last four years, the Council and its housing association partners have delivered more than 1,800 affordable homes across the region, with most built outside Inverness. Achievements include 72% of affordable homes delivered beyond Inverness; 127 homes in remote communities; 837 new Council homes; 897 provided by housing association partners; 76 low-cost home ownership properties; 419 mid-market rent homes; and 135 open-market purchases to meet housing need.

This investment is increasing access to affordable housing while supporting local jobs, communities and the wider economy.

The updated HNDA highlights growing pressure on housing availability. It estimates a need for 31,848 homes over the next 20 years and identifies supply constraints as a challenge for communities and employers. Key findings show 65% of employers surveyed view shortages as a barrier to recruitment and retention; 29% of households expect or would like to move within two years; 20% of households with a health condition say their current home does not meet accessibility needs; and 10% consider their home overcrowded.

On Thursday 29 October 2026, the Highland Council Committee agreed to begin formal engagement with the Scottish and UK Governments on a new Highland Growth Deal, with the potential to unlock £10–£16 billion of public and private investment over 25 years. With major opportunities expected from developments such as the Inverness and Cromarty Firth Green Freeport, renewable energy, electricity transmission, ports, transport, digital connectivity and workforce development, ensuring sufficient housing for investment and employees is essential. The SHIP 2027–2032 continues to programme delivery of at least 700 affordable homes annually, subject to funding.

Alongside new construction, the Council is working with partners to return empty homes to use, maximising existing stock and boosting local availability.

The Council is also investing in warmer, more energy-efficient and accessible homes, while continuing efforts to reduce homelessness, tackle fuel poverty and support independent living.

During 2027, a review of the Local Housing Strategy and SHIP will be undertaken, with input from key stakeholders, to strengthen delivery and ensure Highland can meet its evolving housing needs.