Edinburgh Chamber of Commerce today came out in support of one of the largest city centre regeneration projects in decades. The New Town Quarter proposals will be considered by the planning committee (The Development Management Sub Committee) in December (the 17th).

Proposals were first put forward by the Royal Bank of Scotland before it sold the site to Orion Capital Managers which is developing the site in partnership with property experts Ediston.

Proposals were approved by the city of Edinburgh Council in 2021 but have been revised in the aftermath of the changes wrought by the COVID pandemic and an aftermath that saw a reduction in office demand and construction inflation of more than forty percent.

The proposals remain unchanged from the consented scheme in terms of height, footprint and massing, but changes of use have been made with student housing replacing built to rent and residential replacing office use. The plans now include proposals for 315 family homes (603 bedrooms) and for 599 beds of Purpose-Built Student Accommodation.

Commenting on the proposals, Chamber of Commerce Chief executive Liz McAreavey said, “I have no hesitation in backing these revised proposals. Everyone understands that the world changed after COVID and proposed Rent Controls, and nowhere have they changed more dramatically than the impacts on our economy and construction industry. Construction costs have risen by over 40%, and some major players in construction have left the market in Scotland completely.

It’s clear that the Edinburgh and Scottish housing markets are facing unprecedented headwinds. We know that there have only been three housing developments brought forward in Edinburgh for public consultation this year. And that’s in Edinburgh, which has the strongest city economy outside London.

The message is clear, we have a ‘housing emergency’ and at the same time delivery of housing has slumped. These proposals help tackle a lack of mainstream and student housing in a way that will help make one of the best areas of the city centre even better. We know that the most recent figures from our universities show that 27,000 students still live in HMO flats, and these proposals can help shift where students live in a positive way. There is a huge opportunity to deliver something everyone can feel proud of, and I do believe it’s an opportunity the city should grasp. Edinburgh needs housing, and this delivers exactly what we need more of.