East Lothian Council has revealed it is about to enter into a new funding arrangement with Taylor Wimpey East Scotland Ltd.

As a result, the agreement should allow construction to begin at Pinkie, Musselburgh in the near future.

With the economic downturn, when planning permission is granted for a residential development, if required, the landowner makes a financial contribution towards the necessary infrastructure and additional classroom accommodation to meet the needs of the growing community. This contribution is then used to be underwritten by commercial loans, but due to the current economic climate, this method has become more difficult for developers to pursue. East Lothian Council's solution to this issue – in the case of the strategic development at Pinkie – is to agree with Taylor Wimpey East Scotland that the council will itself underwrite the necessary education infrastructure.

-- Advertisement --

It is believed this is to the value of almost £2.6m.

In return, Taylor Wimpey will transfer some flats and houses to the council to cover its £2.6m investment and they will become part of the council's housing stock.

Around 25% of units on the new site will be delivered as affordable housing in line with the council's requirements.

Cabinet spokesperson on Housing, Councillor Norman Hampshire, said: "It’s a big step on the road to getting housing and the East Lothian economy going strong again."

While Pauline Mills, Land and Planning Director for Taylor Wimpey East Scotland added: "In overall terms Taylor Wimpey will deliver 118 new affordable homes in a mix of two bedroom apartments and bungalows as well as three and four bedroom family homes which will be delivered in phases in line with agreement with East Lothian Council."

(JP/CD)