The loan is the third and the largest the association has received under Allia C&C’s programme with the Scottish Government.

Work is expected to start shortly on 52 energy-efficient houses in Troon, followed later this year by a start on over thirty flats beside the Gaiety Theatre in the heart of Ayr. The association is also finalising the planning of 12 houses in the conservation village of Kirkmichael and 20 in the historic burgh of Maybole.

The charitable bond programme provides simple, unsecured loans to housing associations for up to 15 years, while the interest paid over the life of the loan funds a grant programme for social housing subsidies.

Jim Whiston, director of Ayrshire Housing, said: “We are pleased to be working with Allia C&C for a third time delivering much needed affordable rented housing. Their latest facility will allow us to build another 118 houses over this and the coming year,  helping to deliver on the Scottish Government’s affordable housing target and supporting South Ayrshire Council’s housing strategy.”

Daniel Carrico, head of origination at Allia C&C, added: “We’re delighted to continue our relationship with Ayrshire Housing with this third round of funding through our charitable bond programme. The unsecured, simple funding this programme has provided over the last six years has played a significant contribution to the creation of new affordable homes across Scotland.”

Since 2014 Allia C&C has worked with Scottish Government to distribute over £200m of funds through loans and grants to support the development of new affordable housing.