Around 600 new affordable homes are to be built in Edinburgh, following an announcement of new funding by the Scottish Government.

Speaking during a visit to a Port of Leith Housing Association site on Ocean Drive East where building is already underway, Cabinet Secretary for Infrastructure and Capital Investment, Alex Neil said:

“Edinburgh will see around five or six hundred new houses entirely in the city. In Leith, the Port of Leith Housing Association is getting £5million grant and that will build 143 new houses in Leith alone.”

“The benefit will be right across the city, where new developments will be going up. There are various different scales of scheme. Leith is one of the bigger ones obviously, but it’s right across the city. Wherever there are opportunities, and we can fund them, we’re taking the opportunity.”

“We’re seizing these opportunities because we recognise the importance of social housing in Edinburgh.”

Port of Leith Housing Association is to receive a £5million share of the latest Scottish Government funding. The Housing Association will use the new cash to support the construction of 143 affordable homes in the North Edinburgh area. Most of the homes will be built as part of the new development on East Ocean Drive where today’s announcement was made.

The site is adjacent to the partially completed Newhaven tram stop, which will be partly landscaped until such times as further funding is found to complete the tram route to Newhaven.

Keith Anderson, Chief Executive of the Port of Leith Housing Association explained:

"This funding will mean another 111 affordable homes for people of Leith here at Western Harbour. We have just finished a project over the road at Gooseander Place, which has proven to be enormously popular. We're getting 200 bids for every property that we make available to rent there and that shows you the size and nature of the demand."

Mr Anderson added: "Now we've started building another 111 houses here that will be high quality. Half will be for social rent and half will be for mid-market rent. That's the way that we make the project work financially. None of the flats will be made available for sale, although people who rent through the mid-market scheme can purchase the property at a later date if they wish."

Port of Leith Housing Association was not the only organisation to receive funding towards new affordable housing projects in the city. The new funding will also support building projects in other areas of the city including Greendykes, Craigmilllar, Gorgie, Albion Road and Fort House. In total, the funding will see nearly six hundred new affordable homes built in the city by a variety of organisations, including the City of Edinburgh Council and private house builders.

City Councillor Paul Edie said: "We welcome this additional investment from the Scottish Government in the city. It's good news for Housing Associations and council house building, but even better news for people who need a home."

However, Mr Anderson voiced fears over whether the Scottish Government would be able to provide the level of public funding housing associations say they need to meet government targets.

He explained: "Yes, this £5million will help us build another 150 affordable homes in Leith. But we'll have to raise about £12million of private finance to match that £5million of public subsidy. Ideally, we would like a more equal balance between public and private finance, but in this case we'll have to work with what we've got."

The good thing is, it will keep the momentum going on some of the key projects that we've got in Leith, Portobello and a smaller project we've got in Magdalene."

We're all in very difficult times. So, the amount of money on the table is smaller this year than it has been in previous years. And the demands are getting ever greater. Our anxiety is that the gap between supply and demand will just increase.

As a sector, the housing associations have said that to achieve the governments targets of building 6000 affordable homes per year, each year for the next five years, we've said that we think it'll need about £200million of public subsidy per year to achieve that."

“I worry that we're not going to get anything like that."

IN DETAIL:

£200m boost to build 2700 affordable homes in Scotland

Scottish Government Innovation and Investment Fund