Aberdeenshire Council is preparing to make another application to the Scottish Government for funding assistance to build more new council homes.

The council was one of only eight from 32 to be successful in the last round of funding, securing £900,000 towards 36 new homes in in Tarves, Mintlaw and Johnshaven.

These will be supported with a contribution of £750,000 from second homes council tax income and £540,000 of affordable housing planning gain contributions.

A further £500,000 was earmarked from the council’s housing revenue account, depending on final development costs, a total estimated investment of £2.64million.

The Scottish Government has announced plans to invest a further £25 million in a second round of funding and Aberdeenshire Council will try to secure part of that.

"Officers are confident we will be in a position to submit a bid that meets the criteria and have already been discussing a number of potential projects with developers and local Scottish Government colleagues in anticipation of this second round of funding," said Douglas Edwardson, Head of Strategic Development.


"While the announcement of a second phase of extra funding is very much welcomed, the maximum amount of grant per unit in particular continues to set a challenge for local authorities in that significant additional finance is required to deliver the affordable homes."

If money is awarded by the Scottish Government, it equates to a contribution of around a quarter of the £100,000 cost of each unit built by the council.

Although detailed project proposals are currently being developed and the specific financial implications are not fully known, it is thought the council could build up to 75 new council homes in areas with housing need.

Members of Aberdeenshire Council’s Social Work and Housing Committee welcomed the announcement of the second round of Government funding at its recent meeting and agreed to make a second bid.

Chairman Gurudeo Saluja said: "The council has already been successful in securing funding for new council homes as we were at an advanced stage of preparation when applications were invited to the last round.

"We will now make a further bid to the latest tranche to try to capitalise on the capacity we have to build more homes and alleviate local housing waiting lists."

Given time is short to submit the bid and detailed financial issues are still to be confirmed, approval for a finalised bid will be confirmed by the committee’s chairman, vice chairman and Group Housing Spokespersons.

Applications will be considered jointly by the Convention of Scottish Local Authorities (Cosla) and the Scottish Government against a range of criteria, including the demonstration of well-developed plans to ensure delivery of the proposed new housing.

The council's approved Local Housing Strategy sets the priority for areas of housing need and any projects worked up will reflect this.

(GK/BMcc)