An investment of up to £5 million will see a mix of 30 houses and cottage flats for the affordable rental sector, managed by Angus Housing Association, as well as 12 houses for sale by Cruden.

It was hoped that the project would be on site by April this year but negotiations to purchase the former Mid Craigie Primary School site, which has lain empty since the school’s demolition in late 2009, were made more complicated after site investigations revealed the land was contaminated by materials from the school demolition contract.

Now the project is due to begin in September after Dundee City Council granted planning permission earlier this week.

Five of the new rented homes will be for special needs identified by the council to allow the households to continue living at home. Broughty Ferry architects KDM have designed the new homes.

Angus Housing Association director, Bruce Forbes, told The Courier: “The last time I was aware we were planning to be on site in September.

“We’re really pleased that it has got to this stage.

“It’s taken a while because of issues regarding the condition of the site. There was a lot of work being done in terms of decontamination.

“All of our houses are built for housing for various needs. They all have to be wheelchair accessible. Hopefully we’ll be on site soon.”

Cruden Homes’ land and development director, Fraser Lynes, added: “Cruden Homes are delighted to secure planning permission for this exciting mixed tenure development in a region where we are looking to grow.

“Working with our partners, Angus Housing Association, we believe our proposals meet the requirements of a large demographic, and importantly supply much needed homes on disused Council land.

“We would like to thank Dundee City Council and hope to work with them again in the near future.”