Over 1000 low cost homes planned at Western Harbour in Edinburgh

More than 1000 low cost rental homes could be built on derelict ground at Edinburgh’s Western Harbour if developer Forth Ports secures a £76 million loan from the Scottish Government, according to the Edinburgh Evening News.An initiative launched in April last year invited housebuilders to bid for a government loan to build homes for the thousands of people in the city who are unable to afford rent at normal market prices.There are approximately 145,000 households in the city who currently qualify – have a joint household income of less than £39,000 and be economically active – for the “below market rent” or mid-market rent homes.Forth Ports chief executive Charles Hammond said the government initiative was an innovative way to address the clear demand for good quality, affordable housing.Last year Forth Ports released 96 mid-market homes as part of phase 1 at Western Harbour which attracted 3,400 applicants.And property experts Rettie, who manage the flats on behalf of Forth Ports, have already received over 650 notes of interest for phase 2, due to be available by spring next year.Applications for the loan initiative, which are currently being assessed, will be announced by the Scottish Government in “due course”.And Mr Hammond is “hopeful” Forth Ports will be successful in securing the funding.The £76m loan will be repaid over 25 year and unlike a government grant, means the money will return to the public purse.It will contribute to 36% of the development cost with an injection of 64% from private investment.The number of households in Scotland is projected to increase by 17% to 2.78 million.