A £10 million fund to build more affordable homes across the Highlands has been announced by Housing Minister Kevin Stewart.

It is part of the Inverness and Highland City Region Deal which also includes plans to improve transport networks and digital connectivity.

Stewart said the Scottish Government will provide £9m of the fund with Highland Council contributing £1m.

The money is to be used to provide support with infrastructure grants or loans to kick-start construction work.

Stewart said the fund will support the Government’s commitment to create 50,000 affordable homes, including 35,000 for social rent by 2021.

He said: “Increasing the supply of affordable homes is a key commitment and vital to our ambition of tackling poverty and inequality in our society.

“Recent figures show encouraging signs of activity within the sector as a whole and we want to keep that momentum going through continued investment.

“This fund will support the delivery of new housing in the Highlands and means the council can plan for new affordable homes now.

“It’s a great example of how partnership working can deliver good-quality homes in rural areas that suit the needs of local people, allowing them to remain within their communities.”

Council leader Margaret Davidson said: “Availability of affordable housing is fundamentally important to the sustainability of communities in the Highlands.

“The Highland Council is committed, with our partners, through the City Region Deal to provide quality affordable homes which will help to retain a young and vibrant workforce and give our young people the best possible opportunities.”

Highland Council leader of the Council, Margaret Davidson said: “Availability of affordable housing is fundamentally important to the sustainability of communities in the Highlands. The Highland Council is committed, with our partners, through the City-Region Deal, to provide quality affordable homes which will help to retain a young and vibrant workforce.”