Full construction has begun on the long awaited South Street regeneration project in Elgin, marking a major milestone in efforts to revitalise the town centre and create new homes, business opportunities and public spaces.

The development follows the completion of enabling works carried out throughout 2025, including demolition activity and archaeological investigations on the site.

The South Street project is being delivered through a partnership involving Moray Council, UHI Moray, Cairn Housing Association and Robertson Property Ltd.

It forms a key part of the wider Elgin City Centre Masterplan and is one of the flagship regeneration projects currently underway in Moray.

Once completed, the development will include a new Business Enterprise Hub, 38 affordable one and two bedroom flats, three retail or commercial units, enhanced public spaces and the reinstatement of a pedestrian route linking South Street and the High Street through Newmarket Close.

The Business Enterprise Hub and Housing Mix Delivery elements are both major projects within the £100 million Moray Growth Deal programme.

Funding for the development has come from a number of sources including the Scottish Government, the UK Government’s Levelling Up Fund and Affordable Housing Supply Programme, alongside support from Pride in Place through the Elgin Neighbourhood Board.

A key feature of the project is the long term partnership approach that has been established to manage different parts of the development.

Moray Council will oversee the public realm areas, UHI Moray will manage the Business Enterprise Hub and Cairn Housing Association will own and manage the affordable housing provision.

Construction work is now underway with Robertson Construction Northern leading the build phase.

Councillor Marc Macrae, Moray Council Lead for Levelling Up Fund and Moray Growth Deal said:

“To see tangible progress on South Street is a significant milestone, not only for this project, but the wider regeneration works in Moray.

“This is a culmination of the hard work of all our team and partners involved, to which I congratulate you.

“I look forward to seeing construction progress through 2026/2027 as we continue to improve our public offering.”

Elliot Robertson, Chief Executive Officer, Robertson Group said:

“South Street reflects a strong partnership between the public and private sectors, working together to unlock a complex site and deliver meaningful regeneration.

“It demonstrates how aligned partners can move projects forward and create lasting value for the local area.”

Audrey Simpson, Cairn CEO commented:

“We’re proud to be part of this important regeneration project for Elgin, which will deliver much-needed affordable homes in the heart of the town centre.

“Partnership working has been key to bringing the project to this stage, and we look forward to seeing the development progress and the positive impact it will have for the local community in the years ahead.”

David Patterson, Principal and Chief Executive of UHI Moray said:

“The Business Enterprise Hub will provide flexible spaces for small, existing and new, businesses to innovate and upskill.

“The location of the hub in the town centre and its proximity to our main UHI Moray campus means we are well positioned to make engagement as accessible as possible and provide the invaluable support required to build a thriving business community.”

The project is expected to play a significant role in strengthening Elgin’s town centre by creating new homes, supporting business growth and improving connections between key parts of the town for residents, visitors and local employers alike.