Warning of £300m gap in funding for cheap homes

Published on Friday 5 December 2008 09:30

EDINBURGH is facing a shortfall of more than £300 million in its bid to tackle the affordable housing crisis, city leaders have warned.

The city's "Strategic Housing Investment Programme 2009/14" sets out the investment required for the next five years at 504m.

But the city has so far received just 36m from the Scottish Government for the next year. If investment remains at this level, it would lead to a shortfall of 324m.

A report to be considered by the housing committee warns that failure to tackle the housing crisis will "undermine" the city's ability to cope with the effects of the recession.

It recommends a range of options, including encouraging private landlords to rent properties to people at risk of homelessness.

City leaders estimate they need around 12,000 new affordable homes in the next ten years. The Government last week announced "decisive action" to help the construction industry tackle the economic downturn, including funding a development in West Lothian. But there was no word of extra money for Edinburgh.

The council's housing leader Paul Edie said: "We have made a strong case to the Scottish Government on the need for an increase in investment for housing in the city.

"We are faced with a crippling shortage should investment remain unchanged.

"We know what we need to do, we know how to do it, and now all we need is the money to make it happen. In the meantime, we will take forward what plans we can and help in every way possible anyone that comes to us to find a home."

Councillor Edie was today opening a new development by Port of Leith Housing Association in Henderson Street.

Mohanjit Singh, chief executive of the association, also backed the plea for more Government cash.

He said: "I have worked for Port of Leith for more than 30 years, and in that time I have witnessed a slow but seemingly unstoppable decline in Edinburgh's affordable housing provision.

"The city is starved of affordable housing and as such there is a strong case for additional investment."