TENANTS on an island estate are to be offered the chance to own their properties as a development agency seeks to shed the land.

Highlands and Islands Enterprise (HIE) acquired the 2500 acre Orbost Estate on Skye in 1997 in a bid to boost the local economy and provide housing through croft-style smallholdings.

More than 20 years later, it has outlined plans for a “phased exit from its ownership” of the property, which is made up of a near-1700 acre farm, six smallholdings, two workshops and more than 600 hectares of forestry, all of which are under active management.

This includes offering tenants the chance to acquire the properties they currently rent.

The agency said it always intended to transfer ownership to either a community group or “other interests that would protect tenants and provide long-term community and economic benefits”.

Two workshops are leased for commercial purposes and HIE says 12 people in five families now gain at least part of their income from activities on the estate.

Robert Muir, Lochaber, Skye and Wester Ross area manager for HIE, said: “We’ve kept our ownership of Orbost estate under regular review. There has been considerable progress in deriving benefits from the estate, particularly access to land for farming and crofting and workshop space for commercial enterprises. New affordable housing has been provided with potential for more.

“With the estate now in a much stronger position, we feel this is the time for HIE to begin a phased exit.”

He went on: “This will be done in a way that protects tenants and the progress made so far and enables continuation of community and economic benefits long into the future.”

HIE’s sell-off plan includes offering the farm and farmhouse for sale to the current tenant and converting the smallholdings into six new crofts, with the prospect of selling these to those currently renting the properties.

On the woodland, HIE said: “The agency is currently exploring potential community interest in the forestry area before considering an open market sale.”

Muir commented: “We have briefed tenants of the estate about the plans.

“We have also consulted partner agencies about the forestry proposals and written to community groups who may be interested in taking this on.

“It is important that Orbost continues to contribute to the local economy and the resilience of the community.”

When 10-year leases for three smallholdings were offered in 2000, Dr Jim Hunter, then chair of HIE, said they were the first to be let out on Skye for more than 70 years.

Skye and Lochalsh Housing Association rents out two affordable homes it has built on Orbost land, as well as two HIE-owned houses.

It is expected that the latter properties will be offered for sale either to the occupants or to the housing association.