Housing developer Places for People has signed a major deal with Aberdeen City Council (ACC) to build thousands of new 'affordable' homes in the region.

The £300 million partnership will help to address the shortage of housing in the city.

In addition, the deal will see the formation of a limited liability company, a Scottish first, and will help deliver a 'step change' in the supply of affordable housing.

The newly formed organisation will build, own and manage housing for rent targeted at a range of needs. Its objectives include developing an initial 1,000 'affordable' homes and 1,000 private development homes, with the potential to build a further 1,000 properties.

To carry out the scheme, council-owned sites will be purchased and developed, with the local authority receiving a land value for each site. In addition, through its 50% ownership of the partnership company, it will receive half of the development profits.


Eight sites are initially committed to the project, including at Summerhill, three at Tillydrone, Craighill, East Woodcroft, Kincorth and Bucksburn Farm (Greenferns).

The deal follows a commitment in the council's Strategic Infrastructure Plan (SIP) to build 2,030 homes by 2017.

Council Leader Jenny Laing said: "This project will support and is additional to ACC's own building programme in support of Registered Social Landlords and low cost home ownership which has already delivered 1,081 affordable properties in the last four years.

"These new homes will help to address a shortage of housing in Aberdeen, which has become a barrier to the continued economic growth of the region.

"We look forward to the sites being developed and so we can welcome residents into their new affordable homes."

David Cowans, Group Chief Executive at Places for People, added: "Creating 1,000 new affordable homes for rent will help to transform Aberdeen and the lives of key workers such as nurses and teachers.

"This deal is also transformational for how new homes are delivered in Scotland and provides a blueprint to show that new housing can be built without any Government subsidy or cost to the taxpayer.

"In order to tackle the housing shortage in Scotland and the rest of the UK, public and private sector organisations need to explore new models and new ways of working together."

(LM)