The new homes – a mix of houses and flats – will be built by Elderpark Housing Association.

The project has been made possible thanks to the charitable bond scheme, where social housing providers can access flexible loans from Allia, a social investment charity.

Scottish Government investment of £6.8m in the latest bond issue has provided Elderpark with a £5m loan. The total cost for the development will be around £12m, including a £6.4m grant from Glasgow City Council and £600,000 from Elderpark.

The remaining £1.8m will be given as a charitable donation to housing associations for the construction of social housing. These funds will be earned back in interest on the loan to Elderpark, enabling the Government’s investment in the bonds to be repaid after ten years.

Announcing the investment during a visit to the site in Nethan Street, housing minister Kevin Stewart said: “Charitable bonds enable us to provide vital investment to social housing providers like Elderpark Housing Association. They are a crucial tool which has helped to develop 743 affordable homes across Scotland so far.

“We are committed to delivering at least 50,000 affordable homes over the lifetime of this parliament - backed by more than £3 billion. Access to quality housing is a vital part of our drive to secure economic growth, promote social justice, strengthen communities and tackle inequalities. These new homes in Govan mark another step on the road towards delivering that pledge.”

Councillor Maureen Burke, chair of Glasgow City Council’s regeneration and the economy committee, said: “I am delighted by this announcement and for the people who will make their homes in these new flats and houses, and look forward to all the partners in this project contributing to another landmark in new housing and regeneration for Govan.”

Gary Dalziel, chief executive, Elderpark Housing Association, said: “Elderpark Housing Association is about to undertake a significant development project and has secured loan finance through the innovative charitable bond model delivered in partnership between the Scottish Government and Allia.

“By using this model it has ensured that the funding was both immediately accessible and provided at a competitive rate which will ensure we can provide further 82 high quality and much needed new homes in the Greater Govan area.”

Phil Caroe, director of impact finance at Allia, said: “The Scottish Government’s partnership with Allia is helping to accelerate the development of affordable housing across Scotland. We’re delighted to support Elderpark in providing more homes for social rent in South Glasgow, and we’re looking forward to making further investments into new affordable homes by the end of the financial year.”