The conversion of the former Chance Inn includes six apartments, a communal courtyard and parking.

Developer Carling Property Group said there was already “a strong amount of interest” locally in what will be a boost to the area’s affordable housing stock.

Called New Chance Inn Court, the development will also include one detached and two semi-detached homes, due to open later this year.

Funding for the £900,000 project came partly from a £300,000 grant from the Scottish Government’s Rural Housing Fund, which aims to increase the supply of affordable housing in rural Scotland.

Dundee-based Carling Property Group, the company behind New Chance Inn Court, has a track record of providing high-quality housing, mainly through existing building conversions.

Co-founder Graeme Carling, a strong advocate for affordable housing, hit the headlines in The Herald last week with his views on the state of the private rental sector.

Graeme said: “The strong amount of interest we have received in New Chance Inn Court already, through emails, phone calls and letters, proves that this development fills a need locally. We’re grateful to the Rural Housing Fund for helping with this project, and we’re excited about the second phase opening later this year.

“We feel strongly that good quality accommodation should become the norm in the private rental sector, no matter where in the country people live or how much they earn.”

Carling Property Group, run by husband and wife Graeme and Leanne Carling, owns and manages 350 rental properties all over Scotland, mostly in the Dundee and Angus area.