A £2.9m cash boost to build new council homes in Edinburgh has been welcomed by the city’s housing leader.

Cllr Paul Edie said he was delighted that the Scottish Government had allocated more money as part of their Council House Building Phase 3 funding.

The £2.88m announcement was made on 1 July by First Minister Alex Salmond, as he visited West Pilton Crescent where properties are being demolished to make way for new Council homes.

It brings the total amount of Scottish Government funding for new council homes in the Capital to £7.5m over the past two years.

Cllr Edie said this latest money will go towards funding 96 homes in the North Sighthill phase of the Council’s 21st Century Homes programme - this aims to build 1,300 mixed tenure homes for sale and rent across the Capital over the next eight years.

It will also result in up to £150 million of Council-led investment in the regeneration of the Gracemount, North Sighthill and Pennywell & Muirhouse areas of the city.

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He said: “The cash injection will further boost our commitment to tackle the desperate need for more affordable homes in Edinburgh. Previous funding from the Scottish Government is already beginning to reap rewards with work due to start this month in Gracemount on the first new council homes for more than a generation.

“The 21st Century Homes programme is a vital element of our ongoing long term regeneration plans for the Capital which will support the economy by providing new jobs in both the construction industry and support for local businesses.

“However we are still a long way from plugging the huge gap in affordable housing which is why we are working closely with the Scottish Government to explore new and innovative ways of building more. We have an ambitious target to meet the need for 16,000 new affordable homes over the next 10 years and we will do everything in our power to achieve this.”

First Minister Alex Salmond said: “We are working in partnership with many local authorities, including the City of Edinburgh Council, to provide a new generation of council housing across Scotland and I’m delighted to announce nearly £3m of Scottish Government funding to help in the construction of a further 96 homes in the Capital.

“Together with last year’s two initial rounds of ‘kick-start’ funding, in total we are providing £7.5 million to support the construction of 280 new council houses in Edinburgh, providing more families with a safe and secure roof over their heads and a timely economic boost to construction and other trades.”

(GK)