Hundreds of new homes will be built by Edinburgh City Council if proposals being developed get the go-ahead.
They would be the first council homes to be built in the city in nearly 20 years, and would be made up of housing for sale and rent.
Under the plans about 1,100 houses would be built, marking a change in the city's strategy for tackling the shortage of affordable housing.
The plans form part of the city's response to the credit crunch.
Homes would be built in the Pennywell, North Sighthill and Gracemount areas of the city.
Affordable housing would be subsidised by the surplus generated from housing for sale.
Feasibility study
Councillors will decide in August whether to undertake a detailed feasibility study. That study and plans for the sites are expected to be completed by March 2009.
Councillor Paul Edie, housing convenor, said: "This is the first time in a generation that the council has considered building homes, which marks a major shift in strategy and defining council housing in the 21st Century.
"I hope the people of Edinburgh will be reassured that their council is responding to the obvious difficulties many of them face in finding a home."
The proposals have been welcomed by the Edinburgh Tenants Federation.
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