Edinburgh Council has confirmed that a developer has been appointed for the new Pennywell housing regeneration project.

The creation of more than 700 affordable and private homes in the north of the capital is a step closer to completion when a preferred bidder was unveiled for the multi-million pound development.

Urban Union Ltd has been appointed by the City of Edinburgh to construct the new houses, which will include 356 council homes as well as an attractive outdoor space comprising of a part with private and shared gardens.

Urban Union Ltd is a joint venture partnership which brings together three established construction firms of McTaggart Construction, Keepmoat and Robertson Group (Holdings).

The new homes will form an important part of the regeneration of Pennywell and follow extensive community engagement in the development of the master plans.

The development also has the potential to create opportunities for community enterprise and a 'Co-operative Edinburgh' that will continue beyond the duration of the construction project.

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The progress of the project will be reported to the Improving Muirhouse and Pennywell Group to ensure that local residents remain an integral part of the process.

The project is also expected to deliver further benefits by generating employment as part of a commitment to develop community enterprise. The construction will create 36 apprenticeships, 24 new entrant construction jobs and additional work placement opportunities.

Housing Leader, Councillor Cammy Day, said: "This is fantastic news for the local community and will help us towards meeting the pressing demand for affordable homes across Edinburgh.

"Pennywell will be a substantial development and deliver a high standard of modern, energy efficient homes as part of our commitment to make sure our residents are well housed and to regenerate the local area."

Janice Belshaw, Urban Union's project manager added: "This is a major opportunity to move forward with one of Scotland's largest and most significant housing led regeneration projects.

"We look forward to building on the high level of community engagement which has already taken place in the development of the masterplan for the area. There will be opportunities for the community to be involved in the project particularly in terms of jobs and training opportunities, as well as creating a community enterprise."

Pennywell is the largest development to be undertaken by the ambitious 21st Century Homes programme, which aims to address the need for affordable housing in Edinburgh, regenerate brownfield sites, support jobs and deliver community benefits. It is anticipated that the programme as a whole will deliver more than 1,300 new homes for rent and sale throughout the city.

(JP/CD)