Edinburgh housing: Scottish Government gives £16 million grant for affordable housing at Granton waterfront

First Minister John Swinney visited Granton to announce the funding and learn about how the project is progressing.

He said: “This impressive development is transforming the Granton area of Edinburgh - through the development of new homes, improved infrastructure and low-carbon district heating solutions.”

John Swinney visited Granton waterfront to make the announcement | Scottish Government

The money, from the Scottish Government’s Housing Infrastructure Fund, will allow the city council to undertake crucial infrastructure works in preparation for building 847 new homes, including 387 affordable homes.

It is part of a wider package of financial support being developed by the government at Granton Waterfront, reflecting its commitment to support seven strategic sites as part of the Edinburgh and South East Scotland City Region Deal.

Mr Swinney, who also took the opportunity to meet apprentices working on the construction site, said: “Public sector investment in the first phase of Granton Waterfront is estimated to leverage a further £200 million of private sector investment in private housing and the low carbon heat network.

“The 2025-26 Budget has allocated more than £7 billion for infrastructure and £768 million to ramp up action on delivering affordable homes.

John Swinney praised the Granton waterfront development as impressive | Scottish Government

“This development at Granton Waterfront is an excellent example of how Scottish Government investment is already delivering across my government’s four priorities – to eradicate child poverty, grow the economy, improve public services and protect the planet.”

Council leader Jane Meagher said significant progress was being made at Granton Waterfront, with hundreds of affordable homes underway at both Western Villages and Silverlea.

She said: “I welcome today’s announcement which comes at a critical time, as our city faces an ongoing housing emergency and a severe shortage of homes.

“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. This 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.

“We’re working hard to make Granton somewhere people will want to call home, and this is a great example of the success we can have when governments work together in partnership. I look forward to seeing this progress continue.”

Ben Macpherson with the First Minister at the Granton Waterfront development | supplied

And Ben Macpherson, SNP MSP for Edinburgh Northern and Leith, also welcomed the grant announcement.

He said: “As the constituency MSP, for some years I’ve been working constructively with the Scottish Government and the council to make the case for investment in Granton – arguing in parliament and elsewhere for additional funding streams to deliver more, affordable homes in North Edinburgh and emphasising the huge potential there is to develop the waterfront to meet local needs.

“Therefore, I’m delighted to see the progress that’s been made so far and warmly welcome the significant financial commitments being made by Scottish Ministers to invest in the area.

“Granton is a strategic site for development in our city, for tackling the housing shortages that we have, and for delivering new opportunities and facilities for the people of North Edinburgh. I look forward to seeing even more money being invested into Granton in the years ahead.”