Architects and developers from the south were briefed on the latest developments in Perth last week, while developers from the Highlands will be informed on Friday at a meeting in Inverness.The board will then meet to make a final decision although Councillor Jean Urquhart, chairwoman of the Highland Housing Fair board, admitted delaying the event was already looking like the most likely outcome.

She confirmed some developers involved with the project were facing financial difficulty and rather than putting pressure on them, the board would be making the recommendation to its partners.

In the worst case scenario she anticipates the delay to be for 12 months.

However, an on-line architects' website said there were fears the project, led by Highland Housing Alliance, would lose momentum, particularly if it was postponed for more than a year.

Barrie Haycock, chairman of campaign group Planning Watch UK, while criticising organisers for not forecasting the impact of a declining housing market, also remained sceptical over whether the fair would now go-ahead.

For the event to take place in 2010, he said, the new homes would still need to be built next year, but with experts predicting it to be two years before the housing market recovers he sees this as unlikely. "It was obvious that any downturn in the housing market would put the project at risk," he said.

He claimed it had collectively landed the tax payer with an enormous bill out of the rush to force it through the planning process.

Inverness MP Danny Alexander said it was a reminder of what impact the global credit crunch was having on the Highlands. "This is very disappointing," he said. "The fair would have made a great contribution to the Highlands in terms of leading new ideas on how homes can be developed.

Councillor Urquhart (Wester Ross, Strathpeffer and Lochalsh) explained there had been no public announcement about the delay because it was still in consultation with developers and architects.

The housing fair, on an area of green-wedge land, will showcase the best in housing design, innovation and technology.

It has been dogged with controversy with allegations over the conduct of planning officers and unacceptable land deals playing their part but Councillor Urquhart stressed the event would go ahead.

"It makes me angry that people see this as some kind of trumped up nonsense that doesn't need to happen. There is absolutely no suggestion this will be a cancellation," she added.

l.paterson@inverness-courier.co.uk

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