A student accommodation complex which will take shape on the site of a “haunted” former care home could welcome its first tenants next year.
Housing firm Cityheart wants to create 40 rooms where Bishopmill House stood until it was demolished earlier in the summer.
And the company hopes students will be able to move into a new two-storey building in August 2017.
The single rooms are aimed at those on courses at Moray College University of Highlands and Islands (UHI) and will have shared kitchens and living spaces.
Elgin City North councillor Patsy Gowans said: “Bishopmill House would be an excellent place for that type of development because students could walk into town or the college.
“I think it would be good to have a mix there though, with some affordable housing, and not have it dedicated to one age group – 40 rooms would probably be enough in that area in my view.
“The town centre would also be a good place to give Elgin more of a student feeling.”
Moray College UHI has bases at Moray Street and Linkwood Road in Elgin.
Councillor Gowans believes more academic accommodation in the town would establish a better “vibe” in the evenings to make it an attractive place to study.
Ghostly sightings of the “Bishopmill Lady” have been common since the care home closed in the 1990s.
One Moray Council worker fled when a mysterious “spook” rushed towards him, and others have reported seeing apparitions standing at windows.
The building was latterly used as emergency accommodation for residents forced to flee their homes because of floods in 2009.
Mrs Gowans believes the speed at which the plans have been put forward and lodged with Moray Council is an encouraging sign of how developers see Elgin.
She said: “It shows that people are being serious. The building was an eyesore for a while, but there were reasons it was kept.
“The flood schemes are now in place so it doesn’t need to be kept as a rest shelter. Now we can look at its future and part of that is providing young people with accommodation to go to UHI.”