Images show how run-down estate will benefit from regeneration bid

An artist's impression of how Pennywell would look

The city council plans to build hundreds of new homes, including new council houses, on five separate sites across Pennywell and Muirhouse, including the former site of the old Craigroyston Community High School.

It is hoped that the new homes will help plug the serious shortage of affordable housing in the Capital.

A masterplan for the five sites to the north and south of the area was set to go before city planners today.

It will see 470 new homes being built, while another 300 are expected to be built as part of a masterplan for separate sites in the central areas.

Councillor Paul Edie, the city's housing leader, said: "These plans will lead to the development of 700 badly-needed new homes in the area and are a significant step forward in our plans to build more new council homes in the city. They also give the ongoing regeneration of Pennywell and Muirhouse a major boost.

"We have undertaken extensive consultation with local residents on these plans and I hope they are pleased with the outcome and the further investment this will lead to."

Half of the new homes are to be affordable housing, with the others being built for private sale. Around one third of the new affordable homes will be council houses for rent, while the others will be mid-market rent or other affordable schemes, such as shared equity.

Demolition of old housing on the sites was started in February 2009 and around 365 flats have already been bulldozed. The remainder are expected to have been cleared by the end of 2011, when development work is due to start. The first homes are due to be ready in 2012/13.

However, John Burrell, who runs local bar The Gunner, said the length of time the process is taking is forcing businesses to close down. He said: "Our business has halved since everyone started moving out. We've put money into this business but they're just moving people away. They are bound to have realised the impact this would have. The fact is they are taking far too long to build. There's been houses that have been empty for two years but they're only starting to build now."

Muirhouse Housing Association also submitted a petition that was signed by more than 100 residents that was mainly related to plans for new access roads from Ferry Road and Muirhouse Green.

The plans were expected to get the go-ahead at a planning committee meeting today,

John Bury, the council's head of planning, said that the mix of private housing and affordable housing was "acceptable in principle" and said the plans would "have a positive impact in terms of regeneration".