Scotland's largest independent housebuilder has announced plans to set up a new factory in Witney, creating about 160 jobs.

The Aberdeen-based Stewart Milne Group aims to make Witney the English headquarters for its timber frame housing division.

West Oxfordshire District Council has given planning permission for a purpose-built factory and offices at Downs Road, Witney.

Unemployment in the area is one of the lowest in the country - just 0.6 per cent - but Stewart Milne, the firm's chairman and chief executive, is confident he will attract workers.

He said: "We have been made very welcome and are very encouraged by the people, including planners, whom we have talked to.

"One of the attractions of the area is its geographical position. It is ideal for London and the south-east.

"Our target is to get the factory running by the end of the year and we are confident that we can build up the workforce over a period of time."

The firm will be moving some of its key staff from Aberdeen, but expects to take on 80 production and 80 design and administrative employees. A further 150 people may be needed on building sites.

The firm is investing an initial £10m and aims to produce up to 12,000 timber house kits a year for the UK market.

The Witney operation is being set up because of increasing demand for timber framed housing. In Scotland, it now accounts for half the new housebuilding market.

The system replaces the inner brick wall of traditional housing with a pre-constructed frame, providing faster construction and better insulation.