A £50m initiative to convert vacant office buildings into social housing has been unveiled.

The programme, which is being spearheaded by Consensus Capital Property Limited, will set out developments across the UK over the next two years and will provide 1,200 city centre apartments for leading housing associations.

The first development is due to begin in Perth where the company is converting a former office block, 1-3 Water Vennel, off Tay Street, into 18 apartments for Caledonia Housing Association.

Consensus Capital Property Limited is now going ahead with six similar developments; two in Edinburgh and one in Glasgow, Manchester, Birmingham and London.

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Edinburgh-based Consensus Capital plc, which was launched by CEO Mark Emlick in 2010 as a specialist real estate, energy and private equity asset management company, will see the social housing initiative as a major growth platform.

Mr Emlick said: "We have identified a niche in the commercial to residential development market which is attracting significant interest from housing associations across the UK who want to develop new stock but have been constrained due to cutbacks and lack of developer activity.

"This is a key development for Consensus Capital plc and our property arm and we see this providing a major platform for growth over the next few years."

The model involves securing prime city centre commercial properties, changing use and converting to residential development before leasing to UK housing associations for up to 20 years on full repair and insurance (FRI) leases.

The residential FRI lease, which has been approved in principle by over 20 UK housing associations, will enable them to meet demand for social, mid and open market rental within their sectors without the requirement for capital.

Construction on the Perth development will begin in April and is scheduled for completion in the autumn.

(JP)