Moray Council are to invite tenders for the building of 23 new homes in Speyside – the first to be built in a generation.
The proposed £3million development is planned for the site of the former auction mart at Hill Street in Dufftown.
A planning application decision is expected to be submitted in July for the site, with the resulting development expected to be completed in stages.
A Moray Council spokesman said: “These homes are part of an affordable housing programme and will be designed to be highly energy efficient to keep fuel bills for the occupant as low as possible.
“There is a high demand in Speyside for affordable housing and this will go some way to meeting it. The development will be built in phases, hopefully starting soon after contracts are awarded.”
The news was welcomed by Speyside councillor Fiona Murdoch, who said: “We have been waiting a long time to get new council housing in Dufftown so this is excellent news.
“The site is close to the town centre and the homes will cater for a number of different sized families and age groups, all of whom will be welcome additions to the Dufftown community.”