Port of Leith Housing Association (PoLHA) has launched a wholly-owned subsidiary company, Persevere Developments Ltd, to help address Edinburgh's affordable housing shortage. 

Establishing a private company allows the Association more freedom in funding and development models than its charity status currently allows.

In the next five years, Persevere plans to build around 230 homes at a cost of almost £28m.

Keith Anderson, Chief Executive of PoLHA, said:

"It is important that in these testing times, we are innovative in order to try and tackle the mounting housing shortage crisis which faces the city.

"Establishing a private company for a number of our developments allows us greater flexibility in funding, leasing and development. This means we can build more homes, faster so that people can live in high-quality affordable homes in areas they want to live."

The first project being developed is the 111 flats at Lindsay Road, Western Harbour. The project is due to be finished in August 2013. Other developments include 23 homes at Windsor Place and 31 flats at Newhaven Place.

The developments will be a mix of traditional social rents and mid market rents. The Persevere model will be used solely to fund the mid market rent properties which are aimed at workers who may struggle or be ineligible for traditional social housing, but who may struggle with buying or renting in the private market. 

Persevere Developments has its own independent board. Chairman Philip Neaves is Director of Planning and Development at CBRE and has been a property consultant for over 20 years; he is also Chair of the Leith Theatre Trust. He said:

"We have a very solid vision for Persevere – to build homes people want to live in at prices they can afford. Edinburgh is the most expensive city to rent a home in Scotland, yet we have many key workers who need and deserve decent homes. There is a real shortage and it means people who are earning modest incomes will be struggling to make ends meet. An increase in property types such as mid market rent will go some way in addressing this pressing issue but we are under no illusion much more could be done."

Port of Leith Housing Association will buy the properties from the developer to then lease to Persevere who will then let the properties to the mixed market rent tenants.