The funding, agreed by councillors on the policy & resources committee, will contribute towards a £39m package of funding coming from Scottish Government and private finance to support with a range of housing initiatives.

The funding will support the supply of housing through a range of partners, including housing associations and Create Homes, the new initiative set up to provide mid-market rented housing in Aberdeenshire.

Chair of policy & resources, Cllr Martin Kitts-Hayes, said: “We continue to work with partners across the public and private sectors to progress delivery of a range of housing projects.

“We are very clear that the lack of affordable housing is a key concern for local people and so I’m delighted to be able to demonstrate how Aberdeenshire Council will work alongside its partners to maximise the funding opportunities available to us.”

Vice chair of policy & resources committee, Cllr Richard Thomson, added: “We are exploring a range of initiatives to address the housing shortage in Aberdeenshire, including working with partners, supporting housing associations, building more council houses and offering mid-market rented housing.

“The decision by the council to prioritise spending on more housing reflects the needs of our communities.”

The funding will contribute to housing developments in Inverurie, Peterhead, Stonehaven, Marykirk, Turriff, Huntly, Kemnay, Fraserburgh, Westhill and Portlethen. Developers’ cash contributions will be used to support affordable housing projects in Methlick and Kincardine O’Neil.

Create Homes Aberdeenshire purchased 12 mid-market rental properties in Westhill in 2015 which have all been leased and a further 12 have recently been acquired. This programme will be further enhanced with plans for a further 15 homes in Ellon and 12 in Stonehaven during 2016.