Councillor Mandy Watt, Depute Leader and Finance and Resources Convener, writes:

As Edinburgh continues to grow, one of the most pressing issues we face is the shortage of affordable housing.
We’ve seen demand for homes increase year after year, but at the same time housing costs keep rising. The city’s supply of social housing and the grant funding we receive from the Scottish Government to build new homes just hasn’t kept pace with demand.
We’re working to tackle this housing emergency by both building homes and buying them. With around 5,500 households in temporary accommodation every night because of homelessness, we’ve set a target to significantly improve housing and to source homes quickly, within the means that we have.

Edinburgh continues to be the lowest funded local authority in Scotland per head of population, and currently has fewer council-owned homes, so we need to do things differently from other councils.
In the same way that homebuyers need a mortgage, borrowing has become a vital and standard part of our financial planning when we buy or build homes. It’s the most straightforward way to overcome the shortfall in our grant funding.
At the same time, we’re also continuing to make considerable investment in net zero energy improvements to existing council homes and retrofitting buildings because we need them to be more sustainable and in good condition. This too is supported by capital borrowing.
While our debt levels remain prudent, and in line with our income and spend, our financial planning in this area is enabling us to fund the regeneration the city needs. We’re using this approach to build and extend schools for the next generation, restore important structures like the North Bridge and create new communities, like the Granton Waterfront.

We’ve also taken a big step this week towards finding a solution for the existing community on Dreghorn Estate, and it’s an excellent example of the power of well-managed borrowing.
At a special meeting of our Finance and Resources Committee on Monday, we agreed in principle to purchase 38 homes from the Ministry of Defence for £6.65 million, using a mix of funding from the Scottish Government housing grant together with long-term loans. Rental income, over the life of the properties, will cover the borrowing costs.
If agreed at Full Council, this purchase will secure the futures of families already living on the estate, and it will also provide us with an already thriving community for other council tenants to move into.
This is a huge step towards a positive outcome – a fantastic example of doing things differently to make sure we address our housing emergency – and I know residents are very grateful that this proposal has had so much support from councillors.
This article first appeared in the Edinburgh Evening News on 11 June 2025