en.Wedoany.com Reported - Bancon Construction and Lombard Merton Trust have secured approval from the Scottish Government following an appeal for the demolition and redevelopment of Peregrine House, which will deliver 45 affordable homes.
The development proposal for the site on Mosscroft Avenue was submitted to the Garioch area committee in November 2025 but was rejected by councillors. The developer subsequently appealed to the Scottish Government.
Peregrine House has remained vacant since the Stewart Milne Group entered administration in January 2024. The building was listed for sale but attracted no buyers. After taking over the site, Bancon plans to construct new homes for housing association Hillcrest. The proposal includes a mix of one- to five-bedroom properties, comprising apartments and townhouses.
Councillors opposed the scheme on the grounds that the site was unsuitable, describing it as being "in the middle of an industrial estate," and expressed concerns that noise from surrounding businesses would prevent future residents from opening their windows. However, a noise impact assessment indicated that commercial noise levels were "low impact" and could be mitigated through measures such as building a 3.9-metre-high fence and implementing a "closed-window strategy" (informing residents to keep windows shut). Additionally, committee members noted a lack of sufficient open space on the site and the need to fell trees.
Despite these concerns, planning officers at Aberdeenshire Council recommended approval, arguing that the development would help address the housing crisis declared by the Scottish Government in 2024. However, at the Garioch area committee meeting in November 2025, the application was rejected by 11 votes to 2.
Scottish Government reporter Sarah Foster was appointed to hear the appeal and conducted a site visit in April. Foster overturned the rejection and granted approval. In her ruling, Foster stated that the proposed development generally complied with relevant provisions of the development plan, that there were no significant material factors justifying refusal of planning permission, and that all other issues had been considered, with none altering her conclusion.
