The development supports Aberdeenshire Council’s Regeneration Strategy, which aims to drive prosperity by breathing new life into empty and derelict plots.

The properties on Windmill Street, which will be available for rent, are all designed to be energy efficient. Four will be specially adapted for disabled people.

The £2.2 million development is being built in partnership with Chattan Estates, backed by grant funding of £1,334,160 from the Scottish Government.

Craig Stirrat, director of business development at Grampian Housing Association, said: “This new housing development aims to contribute to the improvement of the physical realm, the quality of housing provision and meet people’s needs for affordable rented homes in Peterhead.

“We are pleased to be supporting Aberdeenshire Council’s plans for the regeneration of the town centre.”

Chris White, Buchan area manager at Aberdeenshire Council, said: “A significant issue to be addressed in Peterhead is a number of vacant and underused sites on the fringes of the town centre so we are pleased that Grampian Housing Association and Chattan Estates have taken this opportunity to develop the site.

“This development, along with other plans by the Council, Grampian Housing Association and other housing providers, will help Peterhead drive forward as a successful and thriving location.”

The flats are expected to be completed by the autumn of 2018.

Vacant, deteriorating, derelict and abandoned buildings and land have a highly detrimental impact on the appearance and amenity of the surrounding area, discouraging inward investment and negatively affecting surrounding property values.

Aberdeenshire Council’s Regeneration Strategy sets out the holistic approach required to achieve the renewal and development of Peterhead. The key aims of the strategy focus on People, Places, and Prosperity.