More than £6million of council tax from second home owners will be used to tackle the housing challenge in the Highlands.
Members will be asked to approve the repayment of £6.308m to the landbank fund at the next full council meeting on October 31.
It is a condition of both the original grant from the Scottish Government and the council tax income that landbank funds must be used to provide additional affordable housing directly or indirectly.
However, Scottish Government granted flexibility to the council to use income in 2022/23 and 2023/24 to support the revenue budget, rather than for affordable housing purposes, given the financial challenge it is facing.
The council is facing a budget black hole of £108 million over the next three years.
Last year, the Scottish Parliament approved legislation which allows local authorities in Scotland to increase the council tax on second homes by up to 200%.
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Highland Council now charges £2267 per year for a Band A property and £8086 for a Band H property if they are being used as second homes.
According to a report published by Highland Council, the measure has brought in £5.42 million this year and resulted in many homes being returned to permanent, residential use.
A second home is defined as a home that is not used as a primary residence but is occupied for at least 25 days in a year. Second homes were previously subject to a 50% discount on council tax.
Councillor Ken Gowans, chairman of the council’s economy and infrastructure committee, said: “The Landbank Fund is a valuable mechanism which allows us to invest further in housing supply in the Highlands.
"The additional £6.308 million will boost our capacity to bring housing back into communities and help to address the housing challenge.”
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