Dundee City Council and Hillcrest Housing Association have formed a partnership to build 81 social rented houses on land south/east of Alexander Street where four multi-storey housing blocks were demolished in summer 2011.

The local authority has invested £4.2m in order to build 33 homes while Hillcrest has put in £5.4m for a return of 48 homes.

The Scottish Government has also backed the scheme with grant funding to the tune of more than £5.6m.

Kevin Stewart MSP said the project is just part of a nationwide effort to provide more affordable places to live.

“We have committed to delivering 50,000 more affordable homes over the next five years,” he said.

“This is backed by an investment of more than £3 billion – projects like this one mark another step on the road to delivering that pledge.

“Making sure everyone in Scotland has a safe, warm and affordable home is a key priority for this government.

“This development, which will see increased insulation and other innovative technologies to ensure these homes are warm and secure, is a prime example of the high quality, affordable homes we want to support.”

The homes will be made available to a variety of the local population including families and people with disabilities.

Also in attendance was John Alexander, convener of Dundee City Council’s neighbourhood services committee, who said it was exciting to see the project come to fruition.

He added: “I am delighted to be hosting this visit to the site by the minister so that he can see for himself exactly how the Scottish Government’s grant money is being used to improve the supply of affordable housing.

“There are a number of innovative and exciting technologies being used on the build that I am convinced will make these houses particularly attractive to prospective tenants.”