Council announces new scheme to combat housing shortage

Edinburgh City Council is to buy 19 newly-built homes in Craigmillar in an attempt to help first-time buyers struggling in the current economic climate.

The properties, which are part of the current regeneration scheme in south of the city, will be made available at below-market rent as the council tries to lessen the impact of the credit crunch on working households.

Councillor Norman Work, vice convener of the council’s health, social care & housing committee, said: “There remains an acute shortage of affordable housing in the city. This has been made worse as potential buyers find it more difficult to get mortgages in the current climate.

“These new homes will give a much-needed helping hand to working households who are currently battling to find a home.”

He added: “This homes purchase is part of a wider strategy to meet the chronic shortage of housing in the city, which includes increasing the supply of affordable rented homes.”

The current Craigmillar regeneration will see the building of 1,300 new houses as part of a £200m investment.

The move has been welcomed by local tenants groups. Barry Stevenson, convener of Edinburgh tenants' federation, said:

“I’m delighted by the action the Council is taking, it’s an important first step. In the present housing crisis, homes are even more desperately needed than ever before, especially social housing.”

The Scottish Government announced earlier this month that extra funding would be made available to provide more affordable housing in the capital. The government will provide £41.5m to be invested over the next year – a £5.5m increase on last year’s allocation.