A new 62-home development has been earmarked for Peterhead, Aberdeenshire.

More than £2m of funding has been secured from the Scottish Government will support the project, while Aberdeenshire Council and Sanctuary have allocated separate funds to deliver the scheme.

The council will contribute just under £1.5m to the project, with Sanctuary providing just under £1m. In a statement, the local authority said it will fund the full development of 31 mainstream properties and 11 unites for supported housing for clients with learning disabilities, and Sanctuary will provide funding for the remaining 20 units.

The total cost of the scheme is in the region of £7m and works are planned to start next month, with a completion date of March 2015.

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As part of the work, the existing flats on Ugie Street in the town will be demolished and replaced with the supported accommodation units.

The contract for the works is currently out to tender and there are plans to have a contractor appointed by the end of February/beginning of March 2014.

Commenting on the development, Chair of Social Work and Housing, Karen Clark said: "This housing project will contribute greatly to the regeneration of Peterhead town centre and to the town as a community.

"We are pleased that funding has been allocated from partner organisations and will continue to work in partnership throughout the project with the aim to deliver affordable and suitable housing to the residents of Peterhead."

Vice Chair, Alisan Norrie added: "I am pleased to hear that the council continues to ensure that housing in Aberdeenshire meets the needs of people, now and into the future."

Sanctuary will manage the construction of Craigewan's 62 properties.

Peter Martin, Sanctuary's Group director - development, said: "The development will not only create much-needed affordable housing for local people in Peterhead, but also boost the town by creating a number of local jobs and training opportunities on site."

(JP/IT)