Two projects, which should significantly boost economic development in Portree, have been given the go-ahead.  Home Farm and the adjacent Portree Industrial Estate have been earmarked for two separate developments to meet the demand for housing, amenity and industrial land from the area's growing population

The 50-acre Home Farm site in Portree has been chosen for a £1.8million project to significantly ease local housing and amenities shortage.  Lochalsh and Skye Housing Association (LSHA) has secured the former sheep farm for a phased development to build 200 homes over 20 years.

The housing and amenity project has been jointly funded by LSHA, Communities Scotland and the Highlands and Islands Enterprise network who have come together to tackle the local housing shortage which is threatening to stifle the area's economic growth.

It will extend to 38 acres and will accommodate up to 600 people in a mixture of low cost and rental units when complete.  The plan also includes 12 acres for community facilities, consisting of recreational areas, a community woodland park, riverside walks, bowling green and clubhouse, and football pitch.

The first phase of the housing development will include 20 low-cost properties with a further 10 houses for rent in 2006, and 10 in 2007.  An additional 100 rented and 60 low cost home ownership properties will be available after 2007.

Margaret Curran, Minister for Communities, welcomed the project:  "This project is an excellent example of public sector agencies working together to secure a substantial piece of land which will bring major economic and social benefits to a rural community. Affordable housing is a key component in boosting economic growth and is particularly crucial in remote rural areas. I'm delighted on behalf of the Scottish Executive to welcome this initiative as part of our commitment to regenerating Scotland's communities."

Mr Lachie MacDonald, director of the Housing Association said:  "We are delighted to have secured this superb site.  It will allow us to meet a wide range of housing needs for the foreseeable future, including houses for rent and house plots for those who wish to build their own home.  We have already started planning how we will develop the site and we will be involving community groups in this process to ensure that the facilities that they wish provided can be incorporated within the overall plan for the area."

LSHA and Communities Scotland has funded a total of £1.42 million towards the land purchase costs.  The final piece in the funding jigsaw came from the Highlands and Islands Enterprise network, which provided £425,000 through its Community Land Unit.

Robert Muir, chief executive of Skye and Lochalsh Enterprise (SALE) said:  "This project offers us the opportunity not only to improve community facilities, but to contribute towards the creation of affordable housing which is greatly needed in the Portree area.  Affordable housing and economic development are inextricably linked, and the current housing shortage is a serious obstacle to economic growth.  It is very rare for land to become available in Skye and this was our chance to be involved in a project that will answer an exceptional housing need."

Meanwhile, plans to extend the neighbouring Portree Industrial Estate in a bid to address the shortage of commercial accommodation in the area have been finalised by SALE.

The 4.03hectare extension is part of the enterprise company's strategic move to improve the availability of serviced land and premises for existing and new businesses.  Work on the £1.5million site servicing project, which has attracted an ERDF grant award of £450,000, will be complete during 2004.

SALE's ownership of the industrial estate has been a key factor in enabling the Home Farm housing project to go ahead.  Robert Muir added:  "The two sites are divided by the River Leasgeary and the construction of an access road to open up the housing land will be made possible by our ownership and servicing of the industrial estate extension."

"There is considerable synergy between these two projects as they will both go a long way towards ensuring Portree's population and economy continues to blossom."