Main construction has started on Elgin’s South Street regeneration after advance works concluded, signalling a major phase in one of the town centre’s flagship projects.

The step-up follows a programme of enabling activity carried out through 2025, including demolition and archaeological investigations.

Delivered through a collaboration between Moray Council, UHI Moray, Cairn Housing Association and developer Robertson Property Ltd, the scheme forms a key part of the Elgin City Centre Masterplan.

The development will provide the Moray Growth Deal's Business Enterprise Hub — supported by £750,000 of UK Government Pride in Place funding via the Elgin Neighbourhood Board — 38 affordable one and two-bedroom flats under the Housing Mix Delivery, opportunities for three small retail/commercial units, high-quality public realm, and a reinstated pedestrian link between South Street and the High Street via Newmarket Close to tie in with other Levelling Up Fund projects.

Both the Housing Mix Delivery and the Business Enterprise Hub are strategic elements of the £100m Moray Growth Deal funded by the Scottish Government. The project has also secured £5.06m from the UK Government as part of the wider £18.3m Levelling Up Fund for the Elgin City Centre Masterplan, plus £3.9m of Scottish Government Affordable Housing Supply funding (AHSP) for the homes.

-- Advertisement --

Long-term ownership and management will be shared: Moray Council will oversee the public realm, UHI Moray will run the Business Enterprise Hub, and Cairn Housing Association will manage the housing as the Registered Social Landlord.

Robertson Construction Northern has now begun the main build, which will use closed panel timber frames with pre-fitted windows manufactured off site by Robertson Timber Engineering in Elgin.

On completion, the scheme is intended to strengthen the heart of Elgin and create a more active, welcoming and better-connected environment for residents, businesses and visitors.

Councillor Marc Macrae, Moray Council Lead for Levelling Up Fund and Moray Growth Deal, said: "To see tangible progress on South Street is a significant milestone, not only for this project, but the wider regeneration works in Moray. This is a culmination of the hard work of all our team and partners involved, to which I congratulate you. I look forward to seeing construction progress through 2026/2027 as we continue to improve our public offering."

Elliot Robertson, Chief Executive Officer, Robertson Group, said: "South Street reflects a strong partnership between the public and private sectors, working together to unlock a complex site and deliver meaningful regeneration. It demonstrates how aligned partners can move projects forward and create lasting value for the local area."

Audrey Simpson, CEO, Cairn (RSL), commented: "We're proud to be part of this important regeneration project for Elgin, which will deliver much-needed affordable homes in the heart of the town centre. Partnership working has been key to bringing the project to this stage, and we look forward to seeing the development progress and the positive impact it will have for the local community in the years ahead."

David Patterson, Principal and Chief executive, UHI Moray, said: "The Business Enterprise Hub will provide flexible spaces for small, existing and new, businesses to innovate and upskill. The location of the hub in the town centre and its proximity to our main UHI Moray campus means we are well positioned to make engagement as accessible as possible and provide the invaluable support required to build a thriving business community."

Jenny Urquhart, Chair of the Elgin Neighbourhood Board also commented: "The Elgin Neighbourhood Board exists to set clear local priorities for Elgin based on community feedback and turn local ambitions into practical action, so we are delighted to have provided additional funding to support the new UHI Moray Business Enterprise Hub on South Street."