The Highland Council has agreed a major funding deal with SSEN Transmission to support the purchase and development of a key site at Longman Harbour Road in Inverness, confirmed on 28 April 2026.
The agreement includes more than £2.7 million in capital funding, unlocking progress on a mixed use development that is expected to play a significant role in addressing housing demand across the area.
The site, formerly home to Inverness College, has long been viewed as strategically important, sitting within an area already seeing wider infrastructure investment and growth.
Under the arrangement, SSEN Transmission will use the site for worker accommodation for an initial five year period, before it is handed back to The Highland Council for permanent development.
That early use is designed to deliver immediate value, with site servicing and infrastructure put in place in advance, improving the long term viability of what comes next.
Once complete, the development is expected to include a mix of residential properties, commercial space and multi tenure affordable housing, creating a balanced scheme that reflects both local need and economic opportunity.
The project sits within a wider effort to tackle the Highland Housing Challenge, where supply continues to lag behind demand in key areas such as Inverness.
Assistant Chief Executive Malcolm MacLeod said the agreement represents a long term investment in the city.
“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.”
The structure of the deal sets out clear roles, with SSEN Transmission acting as funder while the Council leads on development and delivery.
As part of that, the Council will secure planning consent, lease the site to SSEN Transmission’s Tier 1 contractor Balfour Beatty, and oversee the transition to permanent housing once the initial phase is complete.
Key milestones have already been reached, including planning consent and site purchase in March 2026, followed by the granting of a five year lease in April.
Those steps provide a clear timeline and a level of certainty that is often missing in large scale developments.
For SSEN Transmission, the project is also tied to its wider work upgrading the electricity network across the north of Scotland.
Richard Jennings, the company’s Housing Strategy Manager, said the aim is to leave a lasting impact.
“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.”
What sets this project apart is its phased approach, using short term need to unlock long term benefit rather than leaving land idle.
It is a model that could be repeated elsewhere if it delivers as expected.
For Inverness, it offers a clear signal that large scale housing solutions are being actively pursued, not just discussed.
A major funding deal between The Highland Council and SSEN Transmission will bring forward housing and mixed use development at a key Inverness site, combining short term infrastructure use with long term plans to ease pressure on supply.
