Dundee flat development costs soar.

The projected cost of constructing new flats on a vacant site in Dundee has surged past £10 million, more than doubling from the initial estimates, as reported by a council committee this week.

The site located at 219-245 Blackness Road has remained unoccupied since Dundee City Council demolished the previous 26 properties of a tenement block in 2021. Following the demolition, the local authority unveiled plans to construct 24 apartments at a cost of around £4.5 million. The new housing units will comprise 18 two-bedroom flats and six one-bedroom flats designed to be wheelchair-accessible. Although the plans received approval in February 2022, construction work is yet to commence.

Confirmation from councillors representing the area disclosed a substantial increase in the estimated project cost. Councillor Fraser Macpherson expressed his concerns during a housing committee meeting by stating, “(Going back) to August 2018, I have a memo indicating that demolition and rebuild looked very attractive at that point – a cost of £3.275 million. I now have an email from the planning department dated February 23 indicating the total build cost is now £10.3 million. That’s an absolutely worrying increase in the cost.”

Macpherson further emphasised the urgency of completing the project swiftly, stating, “Speed is now of the essence with regard to this particular project. We gave a commitment to the community at the time of demolition that these flats would be provided – they are vitally needed.”

The final cost of the project will be determined through a tender process, with members of the housing committee required to approve it. Council officials have proposed a two-stage competitive tender as the most advantageous route to secure a price for the development. Results of the tender process will be presented to councillors at a scheduled committee meeting in December.

The decision to demolish the Blackness Road tenement block instead of repairing the deteriorating staircases sparked controversy, especially after it was discovered that some tenants living in the blocks were not consulted. Although council officials claimed that the majority of residents supported the plans, a freedom of information request revealed that six private landlords, who do not reside in the area, were counted as “residents”.

Prior to this, former housing convener, Jimmy Black, advocated for the local authority to reevaluate its decision. Black argued that repairing the stairwells, estimated to cost between £880,000 and £1.2 million, would be a more cost-effective and preferable option compared to spending more on demolition and subsequent reconstruction.