Edinburgh Council Approves £207m Housing Investment Plan for 2026/27

Edinburgh councillors approved a £207m council housing investment plan for 2026/27. The decision forms part of a £1.3bn five-year strategy to deliver approximately 4,275 new affordable homes and refurbish high-rise and low-rise estates. Council tenants and applicants on the housing register will see changes in rent and the way empty properties are assigned.

These measures come after the council exceeded its 2025/26 affordable housing target. Completion reached 1,473 homes against a planned 1,368, supported by investment of almost £74m, described as a record high since 2007. The outcomes affect residents waiting for social housing and those already living in council properties across the city.

Rent Levels and Construction Framework

Rent for council housing will increase by 7% in 2026/27. The rise continues the five-year annual increase approved in February 2024. Edinburgh also launched a £350m New Build Housing Framework Agreement (Lot 1) to speed up contractor procurement for the longer-term target of 25,000 affordable homes. A separate £5m Visitor Levy Housing and Tourism Mitigation Fund will support delivery of 472 new homes.

Residents in council homes will pay the higher rent from the start of the financial year. Applicants seeking permanent tenancies will continue to operate under the current restrictions on property allocation while the framework agreement moves new sites forward.

Allocations Policy and Next Steps

The Allocations Policy remains suspended until March 2027. Empty homes are directed primarily to homeless households or those with urgent needs, and some properties are used as temporary accommodation. The suspension limits choice for other applicants on the register until the policy is reviewed.

Further progress on the five-year strategy is expected through the existing procurement framework and the visitor levy fund. Council documents set out the budget and allocation rules that will apply through 2026/27.