The site acquisition is being supported by over £6 million of Housing Association Grant (HAG) from the City of Edinburgh Council on behalf of the Scottish Government and will include a mix of social and mid-market rent homes.

It will form part of the Granton Harbour masterplan which will see £0.5bn invested in regenerating the area to build 2,000 new homes as well as parks, local shopping, a healthcare centre, a retirement living complex, a conference centre and hotel, restaurants, offices and Edinburgh’s new Marina.

Keith Anderson, chief executive, Port of Leith Housing Association, said: “This is an important step towards making Leith an even better place for people to live, visit and do business. We’re excited to be working with the City of Edinburgh Council and the Scottish Government to meet demand for good quality, affordable homes in North Edinburgh and to play a part in the ambitious regeneration plans for Granton Harbour.”

A spokesperson for the City of Edinburgh Council said: “This significant new development at Granton Harbour is a great 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.

“This latest announcement with Port of Leith Housing Association builds on our current success in accelerating house building to provide the increase in affordable homes that Edinburgh so desperately needs.

“I can’t think of a better use for the site than providing much needed affordable housing for local people.”

Kevin Fawcett from Granton Central Developments said: “The provision of quality affordable homes for Edinburgh has never been more vital. Granton Central Developments is delighted to have been able to co-operate with the Port of Leith Housing Association to ensure this land provided these much needed new affordable homes.

“This proposed development will add further impetus to the regeneration of Granton Harbour which is soon to become Edinburgh’s new marina. The environment where homes are built is as important as the quality of the buildings and in both respects the Port of Leith Housing Association have the boxes ticked. This is very good news for Edinburgh.”