Cameron & Pearson was founded 17 years ago by Alan Cameron and Kenny Paterson. It now employs more than 40 staff and has a £5m turnover.

David Sutherland, chairman of Tulloch Homes, said:

"This acquisition is very significant in our plans to drive the group forward. It shows we view the Highlands as much of a growth area as our other UK-wide spheres of activity, including London.

"This takes Tulloch Homes past the 300 mark in employment and we see further jobs growth ahead in a still buoyant housing market."

He said the Cameron & Paterson brand would be retained as a trading entity on selected sites, and that both partners would continue with the firm.

Both Paterson and Cameron will remain with the company.