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Eight Scottish housing associations now have access to a new £70 million lending facility offered by the European Investment Bank and the Housing Finance Corporation.

This is an alternative private lending source helping to support new affordable home developments and jobs in the house building sector.

Housing Minister Alex Neil, in Newcastle, County Down, for a meeting of British-Irish Council Housing Ministers, said:

"The Scottish Government has been working hard behind the scenes to broker this deal.

"The facility was expected to be 50 million pounds and I am delighted to announce that the final figure is £70 million, a testament to the quality of proposals put forward by Scottish associations.

"We have already had initial conversations with the EIB about future funding opportunities and access to more funds.

"This investment will provide a much-needed boost to house building in Scotland, creating and sustaining skilled jobs, an important part of our economic recovery plan."

Piers Williamson, Chief Executive of THFC, said:

"There has been considerable interest from many associations and the quality of the projects brought forward for funding has been really good.

"We've been able to respond to this by increasing the amount for Scotland by £20 million to £70 million. I know there is further untapped demand for long term funding like this from Scotland which THFC is ready to help with."

Ewan Fraser, Chief Executive of Dunedin Canmore Housing Association, said:

"This has been a fantastic opportunity for us. At a time when competition amongst lenders has been limited the highly advantageous terms on offer from the EIB are very attractive.

"The Housing Finance Corporation's approach was straightforward and helpful; I hope we can look forward to more of the same in the future."

EIB funds will be provided via The Housing Finance Corporation (THFC), a not-for-profit finance company that makes loans to over 120 regulated Housing Associations across the UK.

The EIB funds projects in tune with EU economic objectives, including infrastructure, improvement of international links, combating climate change, hospitals, schools and universities.

The Scottish Housing Associations that have secured funding are:

Dunedin Canmore, Hanover, Home Group, North Glasgow, Castle Rock, Prospect Community, Sanctuary, Thenew.

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