Set to deliver 87 units, featuring modern amenities and sustainable building practices, the new project marks another significant milestone for CHAP Group and builds on the successful completion of 439 houses on the Langstracht and Tillydrone this year.

The development had been put on hold because of soaring sector costs – but a redesign has brought it back on budget.

An update will go to Aberdeen City Council’s Communities, Housing and Public Protection Committee on September 5.

The committee report covers other key capital expenditure projects identified within the approved Capital Programme from the Housing Revenue Accounts.

Committee convener Councillor Miranda Radley said: “I am delighted that the Craighill project is proceeding following the re-tendering exercise for the development.

“Aberdeen City Council is committed to providing high quality social housing for tenants in years to come and I look forward to seeing the Craighill site developed in months to come.”

A revised planning application was approved earlier this year, and the groundworks are complete.

It is anticipated that the £26 million development – comprising a mixture of property types – will be constructed in a single phase.

Hugh Craigie, managing director, said: “Being awarded this contract by Aberdeen City Council is not just a great achievement for CHAP Group, but a testament to our commitment to building affordable housing in this region. This project represents a significant step towards addressing the housing needs in our community and we are dedicated to delivering high-quality, sustainable homes that families can enjoy for generations to come.”

Construction is due to commence in the coming weeks and completed by January 2026.