Project receives £16m to build hundreds of affordable energy efficient homes in Edinburgh

A project has received a £16m grant to build hundreds of affordable, energy efficient homes in Edinburgh.

The funding will allow City of Edinburgh Council to build 847 new homes, including 387 affordable homes, across the Granton area.

The Scottish Government announced the money, from the Housing Infrastructure Fund, is part of a wider package of financial support being developed by the government at Granton Waterfront.

The funding comes after a nationwide housing emergency was declared in May last year.

Edinburgh Council became the first in Scotland to declare a housing emergency in November 2023, amid a “severe shortage”.

Leader of City of Edinburgh Council Jane Meagher welcomed the funding, saying it comes at a “critical time” amidst the ongoing crisis the city faces.

“This funding forms part of a wider funding package that the Council and Scottish Government continue to develop, allowing the next phase of development in Granton to get underway later this year,” she said.

Meagher added that the funding will see further development of “much needed” new homes, alongside improved infrastructure, and an innovative low-carbon district heating system.

“The regeneration of Granton will not only help to address the housing shortage but also contribute to our broader goal to become net zero by 2030 and by incorporating cutting-edge technologies, residents will benefit from modern, comfortable, energy efficient homes,” Meagher continued.

First Minister John Swinney visited the development to announce the funding and see how the project is progressing.

Swinney said the “impressive development” of new homes, improved infrastructure and low-carbon district heating solutions is transforming the Grantont area.

“Public sector investment in the first phase of Granton Waterfront is estimated to leverage a further £200m of private sector investment in private housing and the low carbon heat network,” he added.

The First Minister said the development is an “excellent” example of how the Scottish Government investment is already delivering across his government’s four priorities – to eradicate child poverty, grow the economy, improve public services and protect the planet.

“The 2025-26 Budget has allocated more than £7bn for infrastructure and £768m to ramp up action on delivering affordable homes,” he said.