Twelve local authorities have joined a Scottish Government and Scottish Futures Trust scheme to provide new homes for rent by allowing the councils to buy newly built houses for rent using loans underwritten by the Government.
The national housing trust scheme is inviting developers to participate in the hope of getting work underway on around 1,000 new homes mothballed during the recession.
"Building more affordable homes across Scotland presents a formidable challenge in a climate of increasing financial constraint," said housing and communities minister Alex Neil.
"The national housing trust model breaks new ground in the UK and I am delighted that so many councils have embraced this approach as one that can help solve housing pressures locally. The scheme has been designed to ensure that homes delivered through the national housing trust are affordable and offer good value for tax payers' money."
Edinburgh City Council vice-convenor for housing Norman Work said his Council was delighted to be involved.
"This is an innovative way of tackling the shortage of affordable homes not just in Edinburgh but around the country," he said.
"Everyone knows more needs to be done and it's important the public and private sector work in partnership on this project. My message to developers is ‘get on board now' and let's give the construction industry and affordable housing market a much-needed boost."
