--- title: "MID/26/26 - Auchendinny, Penicuik , Affordable Housing" ocid: "ocds-h6vhtk-077abb" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-077abb" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-077abb.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-077abb.json" source: "Find A Tender Service" current_stage: "Award" buyer: "Midlothian Council" published: "2026-09-25" --- # MID/26/26 - Auchendinny, Penicuik , Affordable Housing Buyer: Midlothian Council Current stage: Award OCID: ocds-h6vhtk-077abb [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-077abb) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-077abb.json) ## Summary Midlothian Council’s affordable housing programme required land in Auchendinny, Penicuik, to help meet high local demand for social housing. The land was owned by Bellway Homes, whose sale condition required the Council to award the same company a construction contract for 75 social rented homes on the site. The procurement therefore covers construction of a 75-home social housing development, alongside the land purchase needed to make the scheme possible. The development is in Auchendinny, Penicuik, in Midlothian. The Council’s stated purpose is to deliver its Affordable Housing Supply Programme and meet its affordable housing policy for the Penicuik area. The procurement is complete and the contract has been awarded to Bellway - Scotland East; the contract is active and was signed on 24 September 2026. Its value is £17,273,201. The procurement used a negotiated procedure without prior publication, on the stated grounds that technical reasons prevented competition and Bellway held exclusive rights to the land, with no reasonable alternative in the Penicuik area. The buyer says value for money was achieved through negotiation. Cost was the sole award criterion, weighted at 100%. One bid was recorded. The process was treated as a single lot, and the contract covers construction of 75 social rented units on the land being acquired. For suppliers considering comparable work for Midlothian Council, this award demonstrates demand for the delivery of social rented housing as part of its affordable housing programme in Penicuik. A credible competitor would need the capacity and experience to construct a 75-home residential development and, where the requirement is tied to a particular site, a viable route to securing or controlling that land. This procurement was awarded to the seller of the site after the Council concluded that technical constraints and exclusive land rights left no reasonable alternative, so construction capability alone was not sufficient to compete for this particular arrangement. Cost was the entire stated evaluation basis, making the ability to offer value for money central to the Council’s decision. ## 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 has now awarded the contract to BELLWAY HOMES LIMITED. ### 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 has now awarded the contract to BELLWAY HOMES LIMITED. ### Procurement Information 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. ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/091065-2026 | | Notice type | Award Notice | | Procurement type | Standard | | Procurement category | Works | | Procurement method | Limited | | Procurement method details | Award procedure without prior publication of a call for competition | | Tender suitability | Not specified | | Awardee scale | Large | | All stages | Award | ## Dates | Field | Value | | --- | --- | | Publication date | 25 Sep 2026 | | Submission deadline | Not specified | | Future notice date | Not specified | | Award date | Not specified | | 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 | Cancelled | | Awards status | Active | | Contracts status | Active | ## Buyer | Field | Value | | --- | --- | | Main buyer | Midlothian Council | | Locality | DALKEITH | | Postcode area | 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 | TLM Scotland | ## Supplier | Field | Value | | --- | --- | | Number of suppliers | 1 | | Supplier names | Bellway - Scotland East | ## CPV Codes ### Divisions - 45 - Construction work ### Codes - 45211000 - Construction work for multi-dwelling buildings and individual houses - 45211100 - Construction work for houses - 45211300 - Houses construction work ## Release History - 25 Sep 2026 at 14:48 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/091065-2026 ## Notice URLs - http://www.midlothian.gov.uk - https://api.publiccontractsscotland.gov.uk/v1/Notice?id=ocds-r6ebe6-0000843925 - 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-077abb. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-077abb.json.