A HISTORIC building in Inverness has been reinstated as residential accommodation following an injection of public sector funding.

The “sympathetic” redevelopment of 51-53 Castle Street in the Highland capital has provided eight new homes and a new commercial unit. It marks a new chapter for the 18th century building, which overlooks the castle and is one of the oldest merchant houses in Inverness.

Originally home to a merchant who imported coal for the British Government at Fort Augustus, it was then occupied by local businessman Colin MacKintosh’s fruit shop. His daughter, Elizabeth, went on to become one of Scotland’s most successful crime writers, publishing works under the pseudonym Josephine Tey.

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More latterly, the building was used as part of the Duncan Chisholm & Sons kilt shop, until the family-run firm consolidated its space on Castle Street into smaller units.

The redevelopment of the building, which had fallen into a poor state of repair over the last decade, was supported by funding from The Highland Council, City Region Deal and a £1.2 million Scottish Government Partnership for Regeneration grant.

Cllr Glynis Sinclair, housing and property committee chair and Provost of Inverness, said: “53 Castle Street is steeped in history, and it was fitting that this iconic building was restored to its former glory to allow for its legacy to continue for generations to come.

“The sympathetic restoration, design and attention to detail has undoubtedly brought back to life a key historic building to the city of Inverness and is a prime example of how old historic buildings can and should be repurposed to create beautiful new homes and commercial spaces.”

Merchant House now features a mix of seven one-bed flats and one two-bed penthouse apartment. It was developed and is now managed by local developer HHA.