The partnership with Glen Urquhart Community Council (GUCC) will see HHA transfer the title of the site to a community body, with the not-for-profit development company then responsible for preparing the adjoining site for housing.

The collaboration’s submission of an application to the Scottish Government’s Town Centre Fund to help with demolition and site preparation costs was approved at this week’s Highland Council meeting of the City of Inverness Area Committee.

HHA will be submitting a planning application for the development in the first half of this year, and community groups are holding a public consultation to determine which facilities, in addition to a proposed play park and car park, might be developed on the old shop site.

Gail Matheson, HHA chief executive, said: “We are working with partners including The Highland Council and the community council to bring positive outcomes for all. We aim for this to include our popular mid-market rental homes, where we have already completed two similar developments in the area.”

David Fraser, chairman of Glen Urquhart Community Council, said: “This is a great opportunity for the community to own and develop this village centre site.

“Since this purchase, the community has been working with HHA and The Highland Council on options for the development of the former shop site and adjacent land. The grant from the Town Centre Fund will open up the opportunity for the community to own the site and for HHA to develop much needed affordable homes for the area.

“Subject to planning permission, the first phase of development work will be the demolition of the shop followed by the relocation of the playpark and parking. The community will then be able to develop further leisure facilities and possibly upgrade the shinty pitch.”