A partnership approach between a local housing association, a housebuilder and a national property company is making a significant contribution to housing needs in Aberdeen.

A phased handover at the new development in Bucksburn, on the site of the former Cloverleaf Hotel, is expected to start in early March, delivering a much-needed affordable mix of quality, social and mid-market rental properties.

The joint project between Osprey Housing, Places for People (PfP) and Stewart Milne Homes will provide 68 one and two-bedroom flats in two blocks.

John Low, managing director of Stewart Milne Homes (North Scotland), which built the homes, said: “A key part of our strategy locally is to deliver more affordable housing in Aberdeen. Having acquired the site, identified it as suitable for affordable homes and then designed the homes, we are now proud to be on schedule for the completion of the first phase to be handed over to Osprey.”

Construction staff at the site say they have been inundated with local people interested in securing a property. Tenants will benefit from being next to the new school and community facilities, with better connections to the public open space to the north of the site.

Osprey chief executive, Colin Hawkins, said: “This is an important and significant development for the area providing a mix of social and mid-market rental properties and is supported by both Aberdeen City Council and the Scottish Government. This is a major part of our programme of new builds in the area after several years of not being involved in construction projects. Judging by the unprecedented level of interest our contractors on site have had, properties on this development are likely to be much sought after.”

The Scottish Government target is to deliver 50,000 affordable new homes over the next five years.

Minister for local government and housing, Kevin Stewart, said: “The Scottish Government’s bold and ambitious target over the next five years is to deliver at least 50,000 affordable homes of which at least 35,000 will be for social rent. Our £2.65 million support for these 68 new affordable homes will help to both address housing demand in the city and contribute to meeting this target.”

Alister Steele, managing director at Places for People Scotland, added: “We are delighted to be working with Osprey on this project, delivering much needed new affordable homes for the Aberdeen area. This complements our existing joint venture arrangement with Aberdeen City Council to deliver new homes through the Shaping Aberdeen initiative.”

The development has also been welcomed by Aberdeen City Council’s community, housing and infrastructure convener, Councillor Neil Cooney, who said: “Aberdeen City Council is pleased to have invested £309,000 towards this important affordable housing scheme.

“This is the first build of its kind in this area of Bucksburn for some time and we’re sure they will prove extremely popular with prospective tenants.”