Affordable homes at 300,000?

BRITAIN'S most expensive affordable homes could soon be in Inverness some carrying a price tag in excess of 300,000.

The Inverness Courier has learned that 24 eco-homes being built for Scotland's Housing Expo in August will be used as affordable housing if they fail to sell on the open market.

In the first instance the one-off homes, fitted with the latest green technology and ranging in price from 185,000 to 330,000, will be available through low-cost ownership and as a last resort they would be turned into affordable-rented accommodation.

It forms part of a deal between the Highland Housing Alliance, which is building the homes, and the Scottish Government which, it has emerged, is underwriting the project to the tune of 6 million.

Alan Maguire, head of housing development and estates at Highland Council which funded the land purchase for the expo development, explained money from the sale of the 24 homes will re-pay the bank loan.

"If the alliance do not sell the properties the Scottish Government will replace the funding and all would become affordable housing," he said.

"The worst case scenario is that nothing is sold. If that happens all these houses will be converted into affordable housing by the Scottish Government.

"I do not think that will happen but that is the guarantee required from the government."

It means some of the most expensive affordable homes in Britain could be located on the site at Balvonie Braes at Milton of Leys.

The remainder of the development will be made up of a further 20 affordable homes, built for local housing associations, and eight private houses funded directly by developers to the tune of 2.3 million.

Yesterday a spokeswoman for the alliance said there had already been some interest in the homes from purchasers.

Estate agent Rettie was recently appointed to carry out fresh valuations.

The revelation, however, has sparked fresh concerns among expo critics who fear many of the houses will lay empty following the exhibition later this summer.

Councillor Roddy Balfour (Culloden and Ardersier) said financially the project had become a charade.

"The whole things is a nonsense, It is so financially naive it is unbelievable."

He doubts whether people will be able to get mortgages for the one-off homes whether they are offered on the open market or as affordable.

"I think in a year's time more than half of them will be empty," he said.

Barrie Haycock, chairman of Planning Watch UK, agreed saying there was no way people looking to buy their first home could afford houses at these prices.

"There is no chance they can convert anything over 150,000 into affordable housing. It cannot be physically done from a financial point of view.

"The only possibility they would have is to bulldoze the homes and replace them with homes that people are prepared to pay for."

Whilst in favour of any moves to boost the number of affordable housing in Inverness, Councillor Alasdair Christie (Inverness West) agreed anything over 150,000 would be out of the question for many people.