Work has started on 111 new affordable homes for rent as part of a major regeneration project in an Edinburgh community.

The homes in Craigmillar town centre will be a mix of social and mid-market rent and are being built by Dunedin Canmore, part of Wheatley Group, in partnership with contractor CCG.

The City of Edinburgh Council’s housing leader, Councillor Joan Griffiths, marked the start of the development, one of the biggest of its kind in the city, this week.

She said: “This significant new development at Craigmillar town centre will provide much needed affordable housing in the east of Edinburgh, with homes for social and mid-market rent.

“This site is a brilliant example of how the council and our housing association partners are delivering on the joint commitment to build 16,000 new affordable homes in Edinburgh over the next 10 years.

“The council’s commitment alongside Dunedin Canmore won’t just deliver 111 homes - we expect it to generate benefits to the local community, improving the area and supporting jobs and local businesses.”

The one- and two-bedroom flats and family houses will cater for a wide range of people with 53 for social rent and 58 for mid-market rent. Mid-market rent homes are increasingly popular among people on low to modest incomes who are struggling to buy a home or rent privately, but are unlikely to be given priority for social housing.

Dunedin Canmore chair Tom Mitchell said: “We’re really excited to play our part in the regeneration of Craigmillar and to be bringing forward our first homes for mid-market rent in the area. The new houses and flats and the redevelopment of the surrounding area will make a significant difference to the community.”

The homes, due to be completed by summer 2018, are part of the redevelopment of Craigmillar town centre, being carried out by the EDI Group, that will see the area transformed by new homes and a new retail centre, along with a public square and neighbouring community play park, complemented by a new secondary school, all underpinned by a detailed masterplan.

Kuan Loh, senior development manager at The EDI Group Ltd, said: “The EDI Group is delighted to be playing a leading role in Craigmillar’s regeneration with these new homes. They are vital to the continued redevelopment of Craigmillar and our overall masterplan which is focused around putting quality housing in a welcoming and sustainable environment.

“We are also pleased to be contributing to a new community play park adjoining this development, ensuring that public amenities remain at the heart of this on-going regeneration.”

Calum Murray, director of CCG, said: “CCG have been operational in the area of Craigmillar for over three years now where we have successfully delivered ‘The Schoolhouse’, a mixed tenure residential development on the site of the former Niddrie Mill Primary School, and the stunning Thistle Foundation Centre for Health and Wellbeing. We are excited to continue our work with our partners EDI Group and another member of the Wheatley Group family, Dunedin Canmore, in what is a hugely important project for the community of Craigmillar and the city of Edinburgh.”

Tenants moving into the completed homes will be well served by public transport and local amenities with regular buses to the city centre just four miles away and a Lidl superstore and Home Bargains outlet directly opposite the development.