Lloyds Banking Group chief executive, Charlie Nunn, was visiting Lar Housing Trust’s latest project in Glasgow, which is transforming an abandoned paint factory into 43 high quality mid-market rental homes.

The site, in the Ruchill area in the north of the city, is just one of many similar projects Lar has underway to help tackle the shortage of affordable homes around the country. The charity secured a £65 million loan from Bank of Scotland and Scottish Widows as part of its overall initial funding package that also included a £55m loan from the Scottish Government.

Lar’s chief executive, Ann Leslie, said: “Lloyds Banking Group has been hugely supportive of us through its subsidiaries Bank of Scotland and Scottish Widows. It is thanks to their funding that we can take on complex regeneration projects that most others in the sector won’t touch.

“This 2.5-acre site at Ruchill had been lying derelict for many years and we are creating a new community here, breathing life into the area. We have the risk appetite to tackle difficult projects like this, which will bring huge social and environmental benefits to the area.”

Mr Nunn said: “In order to increase the provision of good quality, genuinely affordable homes, we need more innovative, community-first schemes like those led by Lar Housing Trust. Their regeneration project in Ruchill will bring much-needed housing and a new vibrancy to this area – demonstrating the value of partnership between the private, public and third sectors, in supporting community need.”

Lar is regenerating a number of abandoned properties around Scotland including the historic former naval barracks at Port Edgar, the former bar/restaurant Inn on the Green in Glasgow and an abandoned car factory in the Granton area of Edinburgh.

The development at Ruchill is scheduled for completion early next year.