Aberdeen City Council has awarded a £300m partnership deal to a consortium in order to deliver a step change in the supply of housing.

This follows a commitment in the local authority's Strategic Infrastructure Plan (SIP) to build 2,030 homes by 2017.

Councillors agreed to name Places for People Group Ltd as the successful bidder.

The new model is the first of its kind launched by a local authority in Scotland, and will ensure that new affordable housing will not be reliant on public funding and can be developed to meet need and demand.

Aberdeen City Council leader, cllr Jenny Laing, said: ‘Our Strategic Infrastructure Plan identified a number of key goals to allow us to build on the positive economic position of the city, one of which was to deliver a step change in the supply of housing.’

‘The current route for the delivery of affordable housing,’ she continued, ‘is not able to keep pace with the need and demand in Aberdeen, while there is a heavy reliance on the private sector incorporating 25% affordable housing within their developments, which is not always delivered on site.’

‘Today's decision will not only help to meet our affordable housing requirements, but will also provide significant financial benefits to the council,’ the councillor concluded.

The new partnership will build, own and manage housing for rent targeted at a range of needs, including key workers on modest incomes. It will also aim to develop an initial 1,000 affordable homes and 1,000 private development homes, with the potential for a further 1,000 properties.

The partnership will develop eight council-owned sites with the council receiving a 50% share of the development profit, in addition to payment for the land value. The first sites to be transferred will be Summerhill and East Woodcroft.