Aberdeenshire Council in partnership with Braiklay Estates Ltd, Tarves, is developing affordable homes as part of a larger development.
Four of the houses will be available for rent, with four available to first-time buyers on a shared equity basis.
The council negotiated an agreement with Braiklay Estates to provide eight affordable houses as part of a package of contributions on a larger residential development proposal, approved by the Formartine Area Committee.
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The eight units will comprise four discounted low-cost home ownership units for sale and four to be acquired by the council for rent.
Building work on the homes has now begun and is expected to be completed by early next year.
The Local Housing Strategy seeks to promote sustainable communities as well as encouraging sustainable solutions in house design and materials, and these homes match that aim, more than meeting the Scottish Housing Quality Standard.
The council's Housing Need Study in 2005 identified the Formartine area as having the highest level of housing need in Aberdeenshire.
Chairman of Aberdeenshire Council’s Housing and Social Work Committee, Gurudeo Saluja, said: "All of this has contributed to increased pressure on council housing and the need for us to provide additional affordable housing for rent and for sale.
"We are delighted to see work start on this project, which visibly demonstrates Aberdeenshire Council's commitment to improving the quality, quantity and range of sustainable public and private stock in the area, including the provision of good, affordable, well integrated, private and rented accommodation."
(CD/JM)
