Funds available for new build council and housing association houses in Dundee are set to go up by over £4 million in the next financial year, the city council has confirmed.

The Scottish Government has announced an increase in resources in Dundee for the Affordable Housing Supply Programme to £10.6m in the next financial year, up from the current £6.3m.

City council neighbourhood services convenor, Councillor John Alexander, welcomed the funding increase during a visit to a Hillcrest development in the city.

He said: “This is terrific news for Dundee. We need to provide more modern energy efficient housing for rent to provide homes for those in housing need in the city, particularly for those who need wheelchair housing. Providing new build housing helps us to continue regeneration within Dundee.”

Affordable housing projects are already taking shape across the city. The 32 unit development by Hillcrest at Sinclair Street is nearing completion and the 21 unit Dens Road site is progressing well.

Angus Housing Association will shortly complete 32 houses at Ormiston Crescent while Home Scotland is making good progress building 70 homes at Phase 3 Mill o’ Mains and is completing 38 units at Kilbride Place, Whitfield.

Blackwood Housing Association is also about to start on 6 new build wheelchair units at Glamis Road.

Councillor Alexander added: “With the 77 unit Alexander Street housing development about to start on site and plans now being advanced for up to 120 new housing at Derby Street, we will now see a huge transformation of the Hilltown over the next few years. This additional funding is great news since we can deliver new build housing, more quickly.

“Providing new build housing also tackles fuel poverty in Dundee and is a major boost to the construction sector creating skilled jobs and apprenticeships for young people.”

David Zwirlein, Hillcrest Housing Association director of development and new business, said: “We’re delighted that such a welcomed announcement is being made from our site at Dens Road today. Dens Road is an excellent example of what working in partnership can achieve when delivering affordable housing. The site will not only deliver 15 social rented properties but through Northern Housing Company, part of the Hillcrest Group, we will also deliver 6 mid-market properties. Additional funding will be welcomed by everyone working in the affordable housing sector and we are looking forward to a continued successful partnership with Dundee City Council.”