Perth Council is set to enter into an agreement with Kingdom Housing Association (KHA) that will allow eight affordable homes to be built in Perth.

KHA has submitted plans to develop eight two-bedroomed apartments in St John's Place for mid-market rent. The project meets priorities set out in the Perth and Kinross Local Housing Strategy by contributing to the regeneration of the city centre, as it will bring the upper floors of the building in St John's Place back into use as affordable housing.

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The project is to be part-funded through the Scottish Government's Investment and Innovation Fund. Cash from the fund will be given to the Council to hold as a rent guarantee. This rent guarantee will give reassurance to the lender providing the money to KHA to buy the properties that repayments can be met. The guarantee cannot be held by the Scottish Government for legal reasons, and must be held by a third party.

A meeting of the Housing and Health Committee today, Wednesday 2nd November, will be asked to approve to provide the rental guarantee.

Committee Vice Convener, Councillor Alasdair Wylie, said: "Agreeing to hold this rent guarantee money will allow KHA to provide much needed affordable accommodation in Perth city centre, which is to be welcomed.

"This will assist the Council towards meeting housing need and it will also regenerate this building, which is a prominent position in the city centre."

(CD)