Stag Road in Stornoway is being transformed from a derelict industrial/office site by the construction of 12 new homes where Stag Bakeries were formerly based.
The homes, made up of 8 two-bedroom and four one-bedroom properties, are being built by Lewis Builders Ltd and should be ready for tenants by April 2019.
The cost of the development is £1.05 million of which £868,000 is being funded by Scottish Government Grant.

Katrina Rowlands, HHP’s Development Manager said: “HHP are delighted that this development will transform the former bakery site whilst also providing much needed high quality new homes in this area of Stornoway.”
Councillor Kenny John MacLeod, the Chair of the Comhairle’s Communities and Housing Committee, said: “I am very pleased to see work getting under way on another new HHP development.
“As well as helping to meet the demand for housing in the town, the 12 new flats will replace a former commercial building that has lain empty for many years.
“The new homes will have a very positive impact on the Bayhead area and will contribute towards the regeneration of Stornoway.”
Scottish Government Housing Minister Kevin Stewart said: “I am delighted to see these new flats being built – they will provide high quality, affordable properties to Stornoway, and help regenerate a previously disused site.
“Scotland’s islands make a huge contribution to Scottish life but we know people living there can face challenges when it comes to accessing the home they want.
“We have introduced dedicated support through our £5 million Islands Housing Fund, increasing the supply of affordable housing and helping attract and retain people in our islands.
“We are committed to delivering to at least 50,000 affordable homes across Scotland over the course of this Parliament.
“By providing dedicated support for rural and island housing, we are demonstrating our determination to ensure those benefits are felt the length and breadth of Scotland, including our islands.”