The £3.6 million development of new homes, on the site of former high rise flats owned by Fife Council, is scheduled for completion in August 2017.

Twenty-five of the new houses will be provided by Kingdom Initiatives, which has obtained funding from the Scottish Government. Kingdom Initiatives is a wholly owned subsidiary of Kingdom Housing Association which will also provide a further two cottages on the site.

Nine of the houses will be for mid-market rent (MMR) and 16 will be for sale to local priority applicants.

Bill Banks, Kingdom’s chief executive, said: “This new phase includes the provision of new homes for sale, in a superb, central location and is being partially funded from the Scottish Government’s Partnership Support for Regeneration fund. The funding stream was created to help support the development of housing for sale in areas requiring effective physical, social and environmental regeneration.

“Through this innovative scheme, local families will now have an opportunity to purchase their own new build homes, at more affordable prices, within their local community. The new homes will be sold to priority purchasers with prices starting from £105,000 and new owners are expected to begin moving in during the summer of next year.”

Bill added: “In addition to the homes for sale further MMR houses are also being provided. When completed Kingdom will have provided over 270 MMR homes and we are finding demand for this tenure to be exceptionally high, from priority applicants who are largely excluded from other tenure options.”

The latest phase is part of the partnership between Kingdom and Fife Council, which has been ongoing at Devilla since the council started to demolish the high rise flats in June 2010. A total of 71 social rented and 13 mid-market rent homes have already been built by Kingdom on the site.

The total cost, for the current project, is around £3.6m and the Scottish Government have provided £973,000 in subsidy support to the project. The private finance element of the project will be funded through the Allia bond funding that Kingdom agreed earlier this year.

All the homes have been designed to Kingdom’s normal high standards and will be Secured by Design accredited, built to meet Silver Sustainability standards and Community Benefits have been incorporated into the contract in line with the Construction Industry Training Board (CITB) Matrix.

The project has been designed by Oliver & Robb Architects, Scott Bennett Associates, both of Dunfermline, and Langmuir & Hay of Glasgow. The main contractor is Campion Homes also located in Dunfermline.

When the current phase is completed there are plans for a final 22 new homes to be provided as part of the project.