The deal means the council can write off a debt

The multi-million pound deal sees the properties pass from the control of Comhairle nan Eilean Siar to the Hebridean Housing Partnership (HHP).

It means Western Isles Council's housing debt of �38m has been written off by the Treasury and �12.5m secured for new affordable housing.

The move follows last October's ballot of Comhairle tenants.

It resulted in a two to one majority in favour of stock transfer.

HHP was set up by Comhairle as a not-for-profit housing association.

Tenant control

The transfer was approved by Communities Minister Malcolm Chisholm after Communities Scotland, a Scottish Executive agency, carried out a full appraisal of the business merits of the proposal.

Communities Scotland said the deal would mean investment in 275 new homes.

Mr Chisholm said: "This is really good news not only for tenants who voted a resounding 'yes', but for all of the Western Isles for the new homes it will bring.

"It means rent increases are pegged, much higher investment, more direct tenant control and better services."

Highland ballot

Earlier this month one of Scotland's largest housing stock transfers, involving 14,500 homes in the Highlands area, came a step closer to reality.

Highland councillors moved towards a ballot of council tenants on a transfer of its stock to the Highland Housing Association.

Details of the proposal will shortly be sent to tenants inviting them to comment within 28 days.