TWENTY-TWO new homes will be built on a “sensitive” Peebles site if a £600k funding gap is plugged.

Scottish Borders Council (SBC) is being asked to provide the cash to support the delivery of affordable housing at Tweedbridge Court.

The £6 million project – being delivered by Eildon Housing Association – has faced significant delays but would be able to “progress to completion” with the grant award.

Members of the council’s Executive Committee will be recommended to endorse the funding when they meet on Tuesday (December 3).

A report to the committee, from Nuala McKinlay, SBC’s director of corporate governance, states: “The site had been left redundant for many years prior to Eildon’s involvement and the local development plan recognised the site could accommodate up to 50 new homes.

“Eildon Housing Association undertook a full review of proposals and in October 2019 submitted a new planning application for 22 units of mixed accommodation with communal bike store, bin stances and associated parking and landscaping.

“Following this competitive tendering process and a value engineering exercise, the total cost of this priority project now stands at £6.133m.

“This report recommends approval of a £600k grant funding allocation to this project which would enable it to progress to completion, ensuring a positive outcome for a sensitive site, in a pressured housing market.”

The site was previously owned by Margaret Blackwood Housing Association before Eildon took it on and submitted plans in August 2018.

The company’s proposals to build 40 apartments on the brownfield site next to the Tweed faced fierce criticism and a high number of objections.

Eildon changed its original plans by lowering the height of the two blocks.

But the council refused the bid in February 2019 and an appeal to government planners was also unsuccessful.

A revised 22-home application was backed by SBC in early 2020, with tenants expected to move in during the summer of 2021.

In the local authority’s latest housing investment plan it states the project is expected to be completed in 2026/27.

Eildon said it had been dealing with fluctuating construction costs.

The £600k would be taken from SBC’s second homes council tax affordable housing investment budget.

Ms McKinlay’s report adds: “Once completed, these 22 homes will generate additional annual council tax income to the council. Furthermore the construction phase should positively contribute to reducing income inequality for people in the Borders through the creation of numerous direct construction jobs, apprenticeships and indirect jobs within the construction supply chain.”

An Eildon spokesperson said: “Whilst we wait on the decision by Scottish Borders Council, we are very grateful for the continued patience of the local community.

“Since acquiring this prominent derelict site pre-Covid, the construction industry has seen many fluctuations in costs, and this has delayed progress whilst new funding applications and contractors are found.

“We are as committed as ever to meet the demands the current housing emergency has placed on the people of the Borders, and we stand ready to provide these new affordable homes in Peebles and regenerate this site.”