Castlehill Housing Association is planning to build another 147 affordable homes in the north-east after a £12.5million funding boost.
Aberdeen-based Castlehill will use some of the loan from Clydesdale Bank to build 119 homes for social rent.
It will also plough cash into 28 properties for the mid-market sector – aimed at people who are working, but may not be considered a priority for social housing.
Part of the loan will be used to accelerate planned repairs to existing stock within Castlehill’s portfolio of more than 1,900 properties, predominantly for rent, across the north-east.
The new homes are to be built in Aberdeen, where the housing association is currently negotiating over potential sites and at Westgate South in Inverurie.
Castlehill chief executive David Lapin said: “Despite current economic difficulties, Aberdeen and its surrounding areas retain some of the highest property prices and private sector rents in the country.
“The provision of genuinely affordable housing is crucial. Castlehill is committed to playing its part in delivering new housing and the funding secured from Clydesdale Bank will help to ensure that our plans can become reality.”
Elaine Reed, the head of social housing at Clydesdale Bank, added: “Our relationship with Castlehill goes back over 35 years. We are delighted to provide funding to support the development of much-needed affordable homes.”
Castlehill, a registered social landlord, was founded in 1970 to provide good quality housing for young single parents and their children.
In 1975, the organisation took over Aberdeen Old People’s Housing Association and started to provide sheltered housing for the elderly.
The association expanded during the 1970s and 1980s by building new sheltered housing schemes throughout the former Grampian Region Council area and by buying and improving sub-standard tenement properties in Aberdeen.
It currently operates across three council areas – Aberdeen City, Aberdeenshire and Moray – and, through its Grampian Community Care Charitable Trust subsidiary, provides specially-designed housing for people with particular needs.