---
title: "MID/26/26 Auchendinny Penicuik , Affordable Housing Supply Programme"
ocid: "ocds-h6vhtk-06b02f"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06b02f"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-06b02f.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-06b02f.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "MIDLOTHIAN COUNCIL"
published: "2026-06-08"
---

# MID/26/26 Auchendinny Penicuik , Affordable Housing Supply Programme

Buyer: MIDLOTHIAN COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-06b02f

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## Summary

The procurement process for the MID/26/26 Auchendinny Penicuik Affordable Housing Supply Programme, led by Midlothian Council, is currently in the award stage. This project, located in Penicuik, aims to meet the high demand for affordable housing in the area. A contract has been negotiated with Bellway Homes to construct 75 social rented units. This contract was awarded using a negotiated procedure without prior publication, in accordance with Regulation 33 (1) (b) of the Public Contracts (Scotland) Regulations 2015, due to the technical necessity and the exclusive rights held by the sellers over the required land. The procurement method used was limited, and the total contract value is £17,273,201.41. The notice was published on 8th June 2026, with a stipulated period of at least 10 days before the contract can be formally awarded.

This tender offers substantial opportunities for growth, particularly for businesses within the construction industry focusing on social housing projects. Companies specialising in housing construction to affordable standards will find this contract particularly advantageous. While the primary contractor, Bellway Homes, is responsible for the primary construction, there may be opportunities for smaller subcontractors to provide specialised services within the construction project. The completion of this housing programme is poised to enhance Midlothian Council's capability to meet local housing needs, potentially leading to further collaboration on similar initiatives as regional authorities increasingly seek to fulfil public service mandates through effective partnerships with established construction firms.

## Notice

In terms of Midlothian Council's affordable housing policy, it is noted that the Penicuik area is one of the Council's locations with high demand. As a result the Council requires to secure land within the Penicuik area to assist with meeting that demand and policy ambition and to deliver its Affordable Housing Supply Programme. The area of land at Auchendinny Penicuik owned by BELLWAY HOMES LIMITED incorporated under the Companies Acts, (Registered Number 00670176), having its Registered Office at Woolsington House, Woolsington, Newcastle Upon Tyne, NE13 8BF ("the Sellers) fits with that policy ambition. The contract for the purchase of land is an excluded contract under Regulation 11(1) of the Public Contracts (Scotland) Regulations 2015 (2015 Regulations). The Sellers have included as a condition of the sale of its land that the Council is required to enter into a construction contract with the Sellers for the construction of 75 social rented units on the land being acquired. Without acquiring the land, the Council could not meet its policy in respect of affordable housing in the Penicuik area and the scheme would not be capable of progressing. As a result the Council progressed using the negotiated procedure without prior publication on the basis the works could only be provided by the Sellers on the basis that (i) for technical reasons competition is absent and (ii) the Sellers have exclusive rights in respect of the land and has taken steps within the missives to protect its exclusive rights. There is no reasonable alternative in the Penicuik area. The negotiated procedure without publication was carried out pursuant to Regulation 33 (1) (b) of the 2015 Regulations. Through this negotiated procedure, the Council has ensured that value for money has been achieved. The Council will not award the contract for the period of at least 10 days from the date of publication of this notice and will also issue a contract award notice

### Lot Information

Lot 1

In terms of Midlothian Council's affordable housing policy, it is noted that the Penicuik area is one of the Council's locations with high demand. As a result the Council requires to secure land within the Penicuik area to assist with meeting that demand and policy ambition and to deliver its Affordable Housing Supply Programme. The area of land at Auchendinny Penicuik owned by BELLWAY HOMES LIMITED incorporated under the Companies Acts, (Registered Number 00670176), having its Registered Office at Woolsington House, Woolsington, Newcastle Upon Tyne, NE13 8BF ("the Sellers) fits with that policy ambition. The contract for the purchase of land is an excluded contract under Regulation 11(1) of the Public Contracts (Scotland) Regulations 2015 (2015 Regulations). The Sellers have included as a condition of the sale of its land that the Council is required to enter into a construction contract with the Sellers for the construction of 75 social rented units on the land being acquired. Without acquiring the land, the Council could not meet its policy in respect of affordable housing in the Penicuik area and the scheme would not be capable of progressing. As a result the Council progressed using the negotiated procedure without prior publication on the basis the works could only be provided by the Sellers on the basis that (i) for technical reasons competition is absent and (ii) the Sellers have exclusive rights in respect of the land and has taken steps within the missives to protect its exclusive rights. There is no reasonable alternative in the Penicuik area. The negotiated procedure without publication was carried out pursuant to Regulation 33 (1) (b) of the 2015 Regulations. Through this negotiated procedure, the Council has ensured that value for money has been achieved. The Council will not award the contract for the period of at least 10 days from the date of publication of this notice and will also issue a contract award notice

### Procurement Information

In terms of Midlothian Council's affordable housing policy, it is noted that the Penicuik area is one of the Council's locations with high demand. As a result the Council requires to secure land within the Penicuik area to assist with meeting that demand and policy ambition and to deliver its Affordable Housing Supply Programme. The area of land at Auchendinny Penicuik owned by BELLWAY HOMES LIMITED incorporated under the Companies Acts, (Registered Number 00670176), having its Registered Office at Woolsington House, Woolsington, Newcastle Upon Tyne, NE13 8BF ("the Sellers) fits with that policy ambition. The contract for the purchase of land is an excluded contract under Regulation 11(1) of the Public Contracts (Scotland) Regulations 2015 (2015 Regulations). The Sellers have included as a condition of the sale of its land that the Council is required to enter into a construction contract with the Sellers for the construction of 75 social rented units on the land being acquired. Without acquiring the land, the Council could not meet its policy in respect of affordable housing in the Penicuik area and the scheme would not be capable of progressing. As a result the Council progressed using the negotiated procedure without prior publication on the basis the works could only be provided by the Sellers on the basis that (i) for technical reasons competition is absent and (ii) the Sellers have exclusive rights in respect of the land and has taken steps within the missives to protect its exclusive rights. There is no reasonable alternative in the Penicuik area. The negotiated procedure without publication was carried out pursuant to Regulation 33 (1) (b) of the 2015 Regulations. Through this negotiated procedure, the Council has ensured that value for money has been achieved. The Council will not award the contract for the period of at least 10 days from the date of publication of this notice and will also issue a contract award notice.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/053960-2026 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Works |
| Procurement method | Limited |
| Procurement method details | Negotiated without publication of a contract notice |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 8 Jun 2026 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 2 Jun 2026 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £17,273,201 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | MIDLOTHIAN COUNCIL |
| Locality | DALKEITH |
| Post town | Edinburgh |
| Postcode | EH22 1DN |
| Country | Scotland |
| ITL 1 | TLM Scotland |
| ITL 2 | TLM1 East Central Scotland |
| ITL 3 | TLM11 East Lothian and Midlothian |
| Local authority | Midlothian |
| Electoral ward | Dalkeith |
| Westminster constituency | Midlothian |
| Delivery location | TLM73 East Lothian and Midlothian |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | BELLWAY HOMES |

## CPV Codes

### Divisions

- 45 - Construction work

### Codes

- 45211100 - Construction work for houses
- 45211300 - Houses construction work

## Release History

- 8 Jun 2026 at 15:33 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/053960-2026

## Notice URLs

- http://www.midlothian.gov.uk
- https://api.publiccontractsscotland.gov.uk/v1/Notice?id=ocds-r6ebe6-0000833923
- https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=833923
- https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00336

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06b02f. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-06b02f.json.