Aberdeenshire Council has announced Bancon Homes will progress a £3 million affordable housing development in Inverurie.

The council terminated its contracts with Dundee-based Muirfield (Contracts) after the company went in to administration.

Among the development deals was the 24-home Martin Brae development which Bancon Homes will take over.

In addition, Muirfield was undertaking a contract for a housing development at Barrasgate in Fraserburgh and also delivering upgrades to council homes before administrators were appointed.

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The council's Head of Property, Allan Whyte, said: "The process of finding alternative companies to complete the developments and upgrades to homes started almost immediately when we became aware of the issues.

"We know these affordable housing developments are eagerly anticipated and although the circumstances were out of our control, we have made a real effort to resume work as soon as possible.

"We have been in discussions with Bancon about a revised timescale for completion of the Martin Brae works, which we should know in short course."

(LM)