A contract worth an estimated £80m to build around 800 new homes in the Pennywell/Muirhouse area of Edinburgh has been advertised by the City of Edinburgh Council.

The project is the second phase of the Council’s 21st Century Homes programme which aims to build up to 1,400 mixed tenure homes for sale and rent across the Capital over the next eight years.

At least half of the homes in Pennywell will be affordable with the remainder for sale and rent in the private sector. Construction on the site is due to start in 2013 with the new homes being ready to be lived in by 2014.

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Mark Turley, Director of Services for Communities, said: "This is an exciting time for the people in Pennywell. The development is a housing led regeneration opportunity which will boost the local economy by providing new jobs in the construction industry as well as supporting local businesses.

"As part of the procurement process, the successful developer is also being asked to provide training opportunities and apprenticeships for young people during the course of the construction project. This will be a hugely important contribution to the regeneration of this area.

"The development provides the Council with the opportunity to unlock private investment, provide a mix of new housing and create a sustainable development for the area."

The successful developer will be required to comply with the existing planning permission in principle secured by the Council as well as the Pennywell/Muirhouse Design Guide, which sets the blueprint for design quality, energy efficient new homes, roads, footways and high quality public space.

(GK)