Colaren Homes has entered into discussions with Aberdeenshire Council to lay the framework for an eventual 600-home expansion to the south of the town.

However, councillors were asked to reconsider the amount of affordable homes the developer has to build as part of its vision for the masterplan site (M1).

During the first phase of construction, Colaren had agreed to construct 120 homes, 30 per cent of which were supposed to be affordable.

The developer will now provide just 37 affordable units in total during the first phase after the local authority’s Banff and Buchan area committee voted to reduce this quota to 25 per cent.

Property agents Knight Frank, which acts on behalf of Colaren, said the affordable homes will be provided in a different location within the wider development, closer to existing links to the town.

Stephen Archer, director of infrastructure services at Aberdeenshire Council, had recommended that councillors approve the change.

He said: “Overall, the planning service is satisfied with the proposed amendments which maintain an appropriate design and spatial solution for the M1 site and provide a suitable context for subsequent planning applications.”

The scheme is part of the long-running masterplan for the site, south of Boothby Road, which was first mooted more than a decade ago. Green space for the new community is also included in the plans.

A Section 75 legal agreement between Colaren and the authority would provide financial contributions towards sports facilities in the town. Money could also be siphoned towards an extension to the Saltoun Medical Practice and additional capacity at Mintlaw’s recycling centre.

Work is expected to start in the summer.