Edinburgh to cash in on homes scheme

It intends to fund the building of 600 homes for mid-market rent through the National Housing Trust.

The NHT is a scheme that allows councils to borrow money, underwritten by the Scottish Government, to buy homes that developers have been unable to sell because of the economic downturn.

It can also be used to invest in sites where planning permission has been granted but schemes have been mothballed because the developers have been unable to secure funds.

Several councils have shown an interest in the scheme but Edinburgh is the first to put it into action.

The local authority’s councillors agreed to proceed to the first phase of taking part in the NHT at a committee meeting this week.

Paul Edie, Edinburgh’s housing leader, said: ‘Edinburgh has the most pressurised housing market in the country with around 130 households bidding for every one council home that is advertised.

‘It’s important the council works with our partners in the private sector and the Scottish Government to explore all possible ways of meeting the glaring need for more affordable homes.

‘Given the current economic climate and tightening of public purse strings, NHT is an innovative way of building more affordable homes.’

The homes would be let on short assured tenancies and available for rent for five to 10 years, after which they would be sold.

Alex Neil, the Scottish housing minister, said: ‘The NHT is a ground-breaking initiative which has the potential to kick-start activity on mothballed housing sites, build at least 1,000 new homes right across Scotland and lever in about £130 million of extra housing investment.

‘We are very pleased that Edinburgh council has shown such a keen interest in the scheme and we hope other local authorities will join in due course.’

Eight developers have already expressed an interest in building homes in Edinburgh.

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