Work has started to create 66 new homes on a site at Toll Road, Guardbridge, in Fife.
The homes, which will be made available for rent, will be located close to St Andrews, Kingdom Housing Association has confirmed.
Campion Homes is the main contractor for the project which will consist of one- and two-bedroom amenity cottage flats, and two- and three-bedroom general needs family homes. The development is scheduled for completion by early 2016, and when finished, 56 of the properties will be made available for social rent, with a further 10 for mid market rent.
The housing association has confirmed each home will be constructed to meet high energy efficiency standards. In addition, Scottish Water has confirmed it will upgrade the infrastructure in the area to address the water capacity issue.
Charles Milne, Chairperson, Kingdom Housing Association, said: "This project would not have been possible without the support of our partners to address the water capacity issues in the area. We are really pleased that funding has now been secured to enable work to start on site.
"Affordable housing demand continues to grow across Scotland, and this mixed tenure project will help to meet local needs in the area."
Councillor Tim Brett, Councillor for the Tayside Ward, added: "I am delighted this much needed development is going ahead and would commend Kingdom Housing for the design of the project and the way in which it has kept the community informed in its development."
The project will cost £8.17m and has received grant assistance of £4.29m from the Scottish Government, Scottish Water and Fife Council. It has been designed by Montgomery Forgan Architects.
(JP/MH)
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