The 5.55 hectare site has been sold for an undisclosed sum to Lewis-based housing developer Calmax Construction, which has submitted a planning application with Comhairle nan Eilean Siar (Western Isles Council) for 34 houses including all associated infrastructure and services.

HIAL managing director Inglis Lyon, said: “It has always been our intention to develop this land, not for profit, but to create affordable, high-quality homes that would benefit local people.

“We believe new housing will not only bring growth to the area but will also help a large number of local islanders onto the property ladder and create a vibrant, sustainable community.”

In the past 20 years CalMax has delivered numerous housing developments consisting of more than 300 houses throughout the Western Isles. This has been a mix of rental and shared equity properties to allow people an affordable route onto the housing ladder. Many of these developments have been delivered in collaboration with local housing association, Hebridean Housing Partnership, enabling many island families to benefit from modern high-quality living.

CalMax Development Manager Donald Mackay, said: “We are pleased to have secured the purchase of this land from HIAL. This site has been ear-marked for development for a number of years and has been included in previous local development plans.

“We believe this site has the potential to be an attractive gateway opportunity to the islands and is an ideal development and regeneration opportunity that is visually and economically beneficial. It will provide affordable, sustainable and energy efficient housing in a desirable location for local people seeking to get on the property ladder.”

An outline masterplan has been created that also shows potential for future development which could work in conjunction with the proposed 34-house development if further demand is identified.