Any attempt at bringing more family sized homes into proper use is good. However, Edinburgh should know that £1000 is an insubstantial amount as an incentive. It will take a long time to find 50 people to give up a larger house and move for that amount. They should rethink and make it al least £5000 and get 10 houses back for people who need them now.
What I have observed from personal experience is that some older people do not want to move because they have a strong emotional bond with their home and the attachments is has. Consequently to leave has such a profound impact on them.
Hopefully as more landlords think of ways to try and bring larger properties back into use for appropriate sized households they will be sensitive to the possible implications for their tenants.