---
title: "MID/26/26 - Auchendinny, Penicuik , Affordable Housing"
ocid: "ocds-r6ebe6-0000843925"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-r6ebe6-0000843925"
markdown_url: "https://d3tenders.com/contract/ocds-r6ebe6-0000843925.md"
json_url: "https://d3tenders.com/contract/ocds-r6ebe6-0000843925.json"
source: "Public Contracts Scotland"
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-r6ebe6-0000843925

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## Summary

Midlothian Council’s affordable housing programme requires land at Auchendinny, Penicuik, to support delivery of 75 social rented homes in an area identified as having high housing demand. The procurement covers construction of the homes on land owned by Bellway Homes; the land purchase itself is described as excluded from the public procurement contract. The works include residential building construction (CPV 45211000). The development is intended to help the Council meet its affordable housing policy and supply programme. Delivery is at Auchendinny in the Penicuik area, Midlothian. Bellway’s sale of the land was conditional on the Council entering into a construction contract with Bellway for the 75 homes, linking the land acquisition and building works.

The procurement is complete and the contract was awarded to Bellway - Scotland East. The Council used a negotiated procedure without prior publication, stating that competition was absent for technical reasons, Bellway held exclusive rights over the land, and there was no reasonable alternative in the Penicuik area. The Council reports that the negotiated process secured value for money. One lot covered the works, with cost as the sole stated award criterion. The contract was signed on 24 September 2026 and is active. Its value is £17,273,201. The award record does not state a separate award date or contract period. One bid was recorded for the lot.

This award shows demand from Midlothian Council for delivery of social rented housing as part of its affordable housing programme, including development tied to a specific land acquisition. A credible competitor for similar work would need the capability to build a 75-home residential scheme and to work within the Council’s affordable-housing objectives. The selected supplier was also the landowner, and the Council’s stated rationale was that the land rights and technical circumstances left no reasonable alternative; this made control of the development site central to this procurement. Future suppliers seeking comparable work would therefore need to demonstrate relevant residential construction experience, delivery capacity and a commercially competitive cost offer, while recognising that site ownership or rights can shape the competitive field.

## 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 | Public Contracts Scotland |
| Latest notice | https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=SEP565326 |
| Notice type | OJEU - F3 - Contract 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 | Complete |
| Awards status | Not specified |
| 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 01:00 - Award - OJEU - F3 - Contract Award Notice - https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=SEP565326

## Documents

- https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=SEP565326
  MID/26/26 - Auchendinny, Penicuik , Affordable Housing - 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.

## Notice URLs

- http://
- http://www.midlothian.gov.uk
- https://api.publiccontractsscotland.gov.uk/v1/Notice?id=ocds-r6ebe6-0000843925

## 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-r6ebe6-0000843925. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-r6ebe6-0000843925.json.