The Property Plus project is aimed at helping 16 to 24-year-olds who face significant barriers getting into work.
A 13-week programme, the scheme sees teams of young people help repair void council houses, upgrading the properties so they can be re-let to new tenants more quickly.
The teams are made up of young people who have successfully completed a Community Payback order.
The work includes painting, decorating and gardening.
15 young people are currently involved in the project, with another 15 set to join in January.
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Community Safety Convener, Councillor Douglas Pover, said: "This is a groundbreaking project that aims to assist young people who are furthest away from the jobs market.
"They gain valuable employment skills, as well as the life experience of having to get up and go to work, which provides their lives with a positive structure for perhaps the first time. The project also gives these young people a sense of civic pride and aims to help them avoid re-offending, which is positive for all our local communities.
"Council tenants also benefit from the scheme, because the work done by these young people means that we can turn over void properties much more quickly for re-letting."
Andrew McTernan, from Action for Children Scotland, said: "At Action for Children Scotland we run a variety of employability programmes designed to give vulnerable and disadvantaged young people a 'foot in the door' - helping them to find work, prepare for apprenticeships and make the most of their lives.
"We are pleased to be working with Perth & Kinross Council to deliver Property Plus. This innovative programme allows young people to develop skills and gain work experience, whilst making a positive difference in their community. I am sure their efforts are very much appreciated by local people moving into their new homes."
(IT)
