Aberdeenshire-based Bancon Construction’s Land Led Affordable housing team is partnering with Hillcrest to regenerate the former housebuilder’s headquarters at Peregrine House, which has stood empty since Stewart Milne Group went into receivership in January 2024.

A total of 45 affordable homes will be built, including a mix of one- and two-bedroom flats alongside two- to five-bedroom terraced houses, with some wheelchair-adaptable properties, to accommodate local housing needs.

Bancon Construction will oversee the whole development, which will include more than 2,600 square metres of open green space and private gardens, along with 80 car parking spaces, two bin stores and a cycle store.

The development will help ease affordable housing supply pressure in Westhill, with figures from Aberdeenshire Council showing 250 families are waiting for social housing in the area.

Richard Fawcus, partnerships land director at Bancon Group, said: “We are extremely proud to be partnering with Hillcrest Homes, to regenerate Peregrine House into a new community of affordable homes in Westhill. The new homes are well suited to accommodate growing families and offer various sizes to meet local demand.

“Bancon Construction specialises in land-led affordable construction projects, and we look forward to delivering these much-needed affordable homes which will ease pressure on affordable housing supply in Westhill.”

Hillcrest chief executive, John Alexander, said: “We’re delighted to be working with Bancon Construction to bring more affordable Homes to the Aberdeenshire region.

“With Peregrine House having sat empty for over two and a half years following the collapse of Stewart Milne, this is a fantastic opportunity to deliver further homes for those in housing need, easing pressure on local housing demand while providing families with high quality homes to thrive.”

Planning permission was granted by the Scottish Government-appointed Reporter on appeal, after Aberdeenshire Council’s Garioch Area Committee initially refused the application in November last year.

Demolition is scheduled to start at the start of October which will be followed up by the construction of the new homes.