Argyll Community Housing Association (ACHA) will move ahead with a project to build a third phase of affordable homes in a village near Oban after Argyll and Bute Council confirmed planning approval.

The Scottish Government, Argyll and Bute Council and ACHA had given a commitment earlier to fund the new development in the village of Connel. ACHA has since acquired the site.

It will be made up of 10 homes for affordable rent comprising of 4 x 3 bedroom houses, 2 x 2 bedroom houses and 4 x 2 bedroom flats. The total cost of the project will be in the region of £1.6 million.

This announcement confirms the total number of affordable units on the site will be 28. The first phase of 8 units was completed in May 2015, the second phase of 10 units is currently on site and due to be completed in October. It is intended the third phase will go on site in the summer of 2016.

Alastair MacGregor, ACHA’s chief executive, said: “This is good news for those in housing need, for jobs, and the future of Achaleven Primary School in the village as the family homes will bring in young children.”

He added: “This is not just about homes for the future but jobs as 50 construction workers, including 5 apprentices will be employed on the site during the contract duration.”

Cllr Roddy McCuish, chair of the Oban, Lorn and the Isles Area Committee of Argyll and Bute Council, said: “I am delighted at the announcement of these much needed homes in the village of Connel. I am also pleased to note the partnership working between ACHA, Argyll and Bute Council and the Scottish Government. This will go some way to addressing the housing shortage in the Oban Lorn and the Isles area, but we must continue to build these much needed houses.”

The ten new homes will be built by M & K MacLeod Construction of Lochgilphead.

Kenny MacLeod, managing director of MacLeod Construction, said: “MacLeod Construction Ltd. are delighted to be working with ACHA again on the development at Connel.

“Not only will this provide much needed housing for the local community, it will also provide continued employment for our workforce and allow us to provide much needed apprenticeships for the construction sector.”