The new limited liability partnership has been formed as part of the National Housing Trust’s initiative aimed at building mid-market rental homes throughout Scotland.
The initiative enables councils and developers to come together to kickstart construction on sites that might otherwise have taken a longer time to get underway, safeguarding jobs in the house building industry.
Edinburgh is suffering a chronic shortage of affordable housing and is one of the Government’s target areas for accelerated affordable housing delivery.
The partnership will see Miller Homes start work on 89 new homes at its Varcity North development before the end of 2011.
Once completed, the partnership company will let the one, two and three bedroom apartments to employed tenants, predominantly key workers struggling to get their way on to the property ladder or to afford full market rents.
The partnership will use a managing agent, Lothian Homes, to manage the completed properties, identify potential tenants and manage the rentals over the contract term.
Under the initiative homes must be available to rent over a 5 – 10 year period, following which, tenants will have the opportunity to purchase their house at the market value or to move on.
Should tenants not select to buy, the LLP will sell the property on the open market.
David Knight, managing director, Miller Homes, Scotland “The financial model of the partnership between SFT, the local authority and ourselves will see these homes available for rent by mid-2013.
“This initiative also places considerably less reliance on the public purse for the delivery of affordable housing in the city.
“We welcome the pace at which the key stakeholders have worked to secure this initiative for Edinburgh and to drive it forward.
“At such a challenging time for the public and private sectors, it is welcome that Government recognises the important role that the private sector can play in supporting local government meet its obligations in terms of affordable housing.”
he added: ”In addition to providing affordable rents for key workers, enabling them to live in the city, the initiative also safeguards employment within the housebuilding industry. Both of which provide the potential to deliver further economic benefits for Edinburgh.”
Councillor Paul Edie, Housing Leader for the City of Edinburgh Council, said: “This will bring forward another significant housing development in the city – just one of a number of innovative ways we have been increasing the number of badly-needed homes in the city.”
