Cruden Group to build new council houses in Edinburgh

More than 200 homes will be built on the site of three former high rises in Gracemount

Construction work on the first new council homes for a generation in the capital is set to begin following the appointment of a developer.

The Cruden Group will begin building 215 homes on the site of the three former high rises in Gracemount, which were demolished in October 2009.

At least half of the development will be affordable housing, with the first phase seeing 99 homes built.

The second phase will consist of 116 homes.

The first affordable properties are expected to be available towards the end of next year.

The announcement is the latest step forward in the council's housing programme which aims to build 1,300 mixed tenure homes for sale and rent across the city over the next eight years.

It will also see the beginning of up to £150m of council-led investment in the regeneration of Gracemount, North Sighthill and Pennywell & Muirhouse.

Housing leader Councillor Paul Edie said: "The 21st Century Homes programme is a vital element of our ongoing long term regeneration plans for the capital and also demonstrates our commitment to tackling the desperate need for more affordable homes in Edinburgh.

"Recent investment from the Scottish Government is very welcome as shown by the £1.6m which we secured for the Gracemount development."