A major developer has scrapped plans for more than 300 homes in a north-east town.
Elgin-based Springfield Properties announced yesterday it was pulling the plug on its proposals for Banff.
The news is the second big blow for the port after supermarket Tesco revealed earlier this year it would not be building a new store despite buying land for the project.
Last night, community leaders said they were “devastated” by the housing firm’s decision.
Land to the west of Banff has been earmarked for development since 2012 and it was hoped 320 new homes would be built over two phases.
The first phase would have provided 121 houses at Golden Knowes Road and the second would have delivered another 200 properties, along with retail and community facilities, were proposed for the second phase.
Local councillor John Cox, the chairman of Aberdeenshire Council’s Banff and Buchan area committee, said he was shocked by Springfield’s decision.
Prospective buyers of the planned homes have been told they will no longer be available.
Councillor Cox said: “It’s devastating news for the people who had planned to buy houses there. It will be a shock to them, and it is certainly a shock to the community.
“People were excited to see some development there at a time when development in Banff has been declining significantly.”
Mr Cox added: “Banff is a great place to live and work, so looking forward we would encourage anyone interested to please come knocking.
“All of the hard work has been done in term of the site’s planning process, so I would like to think this is a very shovel-ready project.”
His fellow Banff and District councillor, Michael Roy, said he was “extremely disappointed”.
“There were high hopes that part of the town would be developed and create a buzz – a contribution to the regeneration of the town to let people know that things are happening here,” he added.
“This development would have been very positive and it’s hard to be positive and upbeat about it now.”
A spokeswoman for Springfield said no one form the team managing the Golden Knowes project was available to comment.
An employee at the company’s Elgin base confirmed that houses would not be built.