The loan will fund the building of 119 homes for social rent and a further 28 for mid-market rent. The properties will range from one-bedroom flats to three-bedroom family houses, meeting a wide variety of needs.

Castlehill will also use some of the new funding to accelerate planned repairs to their existing stock, ensuring all tenants homes are of the highest standard.

David Lappin, CEO of Castlehill, said: “Despite current economic difficulties, Aberdeen and surrounding areas retain some of the highest property prices and private sector rents in the country so 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, head of social housing at Clydesdale Bank, added: “Our relationship with Castlehill goes back over 35 years and we are delighted to provide funding to support the development of much needed affordable homes. Clydesdale Bank is continuing to provide substantial funding to support the ongoing growth in the social housing sector and is committed to working with Castlehill and other social landlords to meet the ever growing demand for affordable homes. As part of this commitment, we’ve established a specialist team within the Bank to advise and work alongside our housing association customers.”