Sanctuary is working with the Scottish Government and Inverclyde Council to transform the site, in Duncan Street, and is building the new homes using its own in-house construction team.

The development comprises a mix of one, two, three and four-bedroom flats and houses, all available for social rent.

John Arthur, voluntary board member at Sanctuary Scotland, said: “Challenging market conditions such as high levels of inflation have led many contractors across the UK to cease trading. To ensure we can continue to deliver new homes without delay, we’ve invested in our own in-house construction team.

“Not only does this give us greater control over the build process and quality, but it also means we can start on-site sooner and bring much-needed new affordable homes to local communities more quickly.”

The project is supported by a grant of £6.9 million from the Scottish Government and will take around 18 months to deliver, with the first homes expected to be complete by early spring 2026.

Four of the flats have been specifically designed to accommodate people with a range of accessibility needs, while the site is close to the town centre with good access to local amenities and transport links.

This is Sanctuary’s fifth new build scheme in Inverclyde, as it continues to play its part in meeting the established need for more affordable housing in the area.

Housing minister Paul McLennan said: “I’m pleased that work has started on 64 new social rented homes at the Duncan Street development in Inverclyde.

“Good quality housing is essential to attract and retain people in our communities. We remain focused on delivering 110,000 affordable homes across Scotland by 2032 with at least 70% for social rent and 10% in our rural and island communities.”

Councillor Michael McCormick, Inverclyde Council’s convener of environment and regeneration, said: “This is a prominent site in a good, central Greenock location that’s ripe for redevelopment. This project is a key element of the council’s five-year strategic housing delivery programme for Inverclyde, so it’s great to be celebrating the start of work with our partners Sanctuary.

“It has been well documented that there is a housing emergency in Scotland and while we are fortunately not in that position here, the prospect of 64 new, affordable homes for Greenock and Inverclyde is a positive boost for the area.”