Land for new affordable housing in Edinburgh is to be handed to developers at no upfront cost, in a bid to get the construction and property industries growing.

The Scotsman newspaper reported the move, believed to allow firms to build on land owned by local authorities without having to pay for the site straight away.

Developers would enter an agreement to pay for the plot at a later date, avoiding the potential problem of a development stalling due to market uncertainties and the difficuty of securing big loans from banks.

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The council has had trouble selling off spare lands since the property crash of 2008 - it lost £37.1m of expected takings in three years.

Housing chiefs at Edinburgh City Council are said to be drawing up the plans, with safeguards in place to make sure developers would pay a fair price.

Cammy Day, the city's housing leader, said: "There are huge challenges ahead and we are always looking at creative ways to deliver more social and affordable housing in the city."

Lynsey Anderson of the Scottish Building Federation said: "In March 2011, there were more than 25,000 names on Edinburgh's housing waiting list, so there's clearly a desperate need for more affordable homes. Meanwhile, between 2007 and 2010, the local construction industry has shed more than 5000 jobs so it's an important sector in real need of support."

Councillors will formally approve the plans this week.

(NE)