Work to build 111 new affordable homes has started at Edinburgh's Waterfront.

Port of Leith Housing Association's (PoLHA) £11.7m development at Ocean Drive East, Western Harbour, Newhaven will be a mix of social rent and mid-market rent properties.

Keith Anderson, Chief Executive of PoLHA, said:

"This is a major development for the Association and for the Waterfront as a whole. Through an effective partnership process, we now have a very exciting development to offer the people of Edinburgh.

"There is an immediate pressing and ever-increasing need for affordable housing in Edinburgh. There is also a need to continue developing and regenerating the Waterfront community.

"As well as traditional social housing, there is a growing group of people who fall into the camp who require 'mid-market' rents, those who cannot afford full private market rents but may not be eligible for social housing. This is our first development of mid-market rent properties. It is important we create mixed communities and are happy we are offering an almost 50-50 split at this development. A mix of affordable housing types is very important."

This development will have 58 properties let as social rent, with the remaining 53 homes available for mid-market rent.

It is located near PoLHA's 102-flat building at Goosander Place which was opened in June 2010 and was the first affordable housing at the Waterfront.

The flats will range from one to four bedrooms, with 46 one-bedroom, 49 two-bedroom, nine three-bedroom and seven four-bedroom making the development suitable for families, single people and professional couples.

Cllr Paul Edie, Housing Leader for the City of Edinburgh Council, said:

"This development will provide affordable homes and will be a major boost to the regeneration of the Waterfront area.  More and more households find it difficult to get on the housing ladder which is why the Council and its partners are currently building over 1,000 new affordable homes all over the city."

The site is being constructed by Hart's Builders (Edinburgh) Ltd and work is due to take around two years, with a projected completion date of late summer 2013.

Robert Kerr, Hart Builders' Business Development Director, said:

"We are delighted to be working with Port of Leith Housing Association at S2 Western Harbour. S2 will provide 111 well designed modern homes and it is very encouraging to see associations like Port of Leith working collaboratively with the Scottish Government and the City of Edinburgh Council with the aim of securing innovative investment funding to tackle the desperate need to supply more affordable homes in Edinburgh.

"This development will not only provide a secure and sustainable environment but will also enable Hart to maintain current employment and training opportunities over the lifetime of the construction period."

The development will incorporate environmentally efficient features. Top floor flats will have solar water heating panels on the roof which will be linked to system boilers reducing the water heating energy requirements for these properties. Whole house and assisted ventilation systems will be installed in all flats reducing energy use and improving air quality and there will be high levels of insulation will be used throughout.