Over the course of the next 16 months, the £5.6 million project will deliver 29 affordable council homes for social rent within the empty B-listed buildings, comprising 18 one-bedroom flats, six two-bedroom flats, one three-bedroomed flat and four five-bedroomed townhouses.

The local authority is financing the project with a £1.6m grant subsidy provided by the Scottish Government. Local firm Andrew Shepherd Construction will carry out the construction work for the council.

Cllr Donald Morrison, communities convener, said: “This significant housing development will help meet a pressing need for affordable housing in Forfar and Angus.

“Everybody has a right to good quality housing and we’re delighted that construction is now underway on this high-quality development.”

All of the homes will be completed to the silver standard of sustainability, which measures energy efficiency and carbon output. Each home will be highly insulated and heated by a district heating system producing a lower carbon footprint and lower fuel bills for residents.

Cllr Jeanette Gaul, vice-convener of communities, said: “While the site will no longer be used for its original purpose, this project will re-invigorate this landmark in the heart of Forfar and ensure that the façades are retained.

“The old buildings which have provided so many childhood memories for countless Forfarians will be renewed and transformed to provide modern, affordable and energy efficient accommodation for a new generation of our residents.”

The properties will be pre-allocated so that tenants can be involved at various stages of the development prior to receiving the keys to their new homes around the anticipated completion date of summer 2017.