The homes, which would be built across five sites in the north and east of the Capital, would be the first to be built under the National Housing Trust (NHT) scheme.
The developers have all entered into a Framework Agreement with the Council and Scottish Futures Trust and their proposals will be evaluated further before contracts are signed.
The interested developers and potential sites are:
Places for People (Lochend North and Madelvic 8), Miller Homes (Telford North), Hillcrest/Teague (Salamander Street/Salamander Place) and New City Vision (Niddrie Mains Road).
The latest update is included in a report, National Housing Trust – Appointment of Developers to Framework Agreement Update, which was discussed at the Council’s Finance and Resources Committee today (7 June).
The innovative NHT project is being led by the Scottish Government and the Scottish Futures Trust in order to provide a major expansion in the provision of affordable rented homes across the country. It builds on an initiative in Edinburgh between the Council and housing associations in the city which has already delivered new affordable homes.
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Under the scheme the Council would borrow funding with the Scottish Government underwriting the loans to remove the financial risk in lending funds.
Edinburgh is leading the way among Scottish local authorities taking part; aiming to secure much-needed affordable homes and boost the local economy. All the planned homes will be for intermediate rent.
Councillor Paul Edie, Housing Leader for the City of Edinburgh Council, said: “Securing affordable homes through the National Housing Trust would be a significant achievement given the current financial and housing climate. This has been a very thorough process and I am pleased we are getting closer to the finishing line.
“NHT is an innovative way of tackling the shortage of affordable homes not just in Edinburgh but around the country. Everyone knows more needs to be done and it's good that the public and private sector are working in partnership on this project.”
Minister for Housing and Transport, Keith Brown, added: “The National Housing Trust model, developed by the Scottish Government and Scottish Futures Trust, has won plaudits across the UK. Procurement of Phase 1 is nearing completion and we will soon see several hundred affordable homes being developed through this ground-breaking initiative, safeguarding hundreds of jobs.
“I am delighted that Edinburgh City Council has embraced this approach as one that can help ease housing pressures locally, and that they have been successful in attracting this level and quality of developer interest. I hope the NHT can act as a catalyst to encourage further, innovative approaches that will maximise supply through increased efficiency and greater leverage.”
Barry White, Chief Executive of the Scottish Futures Trust, commented: "In these challenging economic times, NHT opens the doors to build affordable housing in Scotland. This demonstrates how the public and private sectors can work together in an imaginative way.
"Such innovation is at the heart of Scottish Futures Trust's work to attract additional finance while ensuring value for money for the taxpayer."
(GK/KMcA)
