Scotland's largest development of homes heated by subterranean pumps that take natural heat from the ground was opened yesterday.

The 55 homes in East Lothian have been developed with renewable energy technology to reduce carbon dioxide emissions and fuel bills.

Called ground-source heat pumps, they provide low-cost heating and hot water.

Communities Minister Stewart Maxwell said: "The Scottish Government is committed to increasing the number of quality affordable homes like these here in Tranent.

"It is important that we continue to improve the energy efficiency of homes in Scotland. This makes them warmer and more economic to heat.

"It also strengthens the important links between creating more homes and tackling fuel poverty, improving energy efficiency and our commitments on climate change."

Martin Pollhammer, of East Lothian Housing Association, said: "These homes have been exceptionally popular. We received more than 1650 applications for them when we advertised them for rent, which gives an idea of just how acute the housing shortage in East Lothian is.

"As well as making a contribution to solving this housing crisis, these homes demonstrate that sustainable development on a large scale is possible, with the added benefit that for our tenants these homes are both cheap to rent and cheap to run."

The £6.5m development of affordable homes for East Lothian Housing Association at The Hedges, Windygoul, Tranent was built by housebuilders Lovell with support of more than £4.5m from Communities Scotland and private finance provided by the Dunfermline Building Society.

More than half of the homes were allocated to local priority homeless households. East Lothian Council made a contribution to the development from receipts generated from Council Tax on second homes.

Ground-source heat pumps work like refrigerators in reverse by upgrading low temperature heat to a higher temperature for space or water heating in a building.