The scheme will see 138 new homes built in Peebles

Scottish Borders Council has teamed up with the Eildon and Margaret Blackwood Housing Associations to build 138 new properties in the town.

The authority intends to sell its Dovecot Road depot to Eildon to allow the project to proceed.

The move will be put before councillors for approval next week. Council leader David Parker said it was the "best news" the town could receive.

"Affordable housing is badly needed throughout the Scottish Borders," he said.

I believe that this investment represents fantastic value for the Borders and is great news for Peebles Cllr Neil Calvert

"By working in partnership with Communities Scotland, EHA and the private housing sector, we will be able to provide an excellent investment which will benefit the whole Peebles community."

The partnership deal will see the replacement of Dunwhinny Lodge, a council-run home for the elderly, and MBHA's Tweedbridge Court, which houses older and disabled people.

Council finance spokesman Neil Calvert was also pleased by the proposed deal.

"I believe that this investment represents fantastic value for the Borders and is great news for Peebles," he said.

"In the single project we are resolving problems at Dunwhinny and Tweedbridge Court as well as providing Peebles with a significant development of affordable housing."

Spokesmen for the two housing associations involved said they were also pleased to be involved.

'Exciting project'

"We hope the council approves the report on the sale of land next week which will allow us to embark on this exciting project," said Laurence Cox of EHA.

"This is a wonderful example of innovative partnership working in action," added Peter Mountford-Smith of MBHA.

"We would wholeheartedly support the council in disposing of this site and making this project a reality and not just a theoretical exercise."