17 August 2010 Last updated at 14:00 ET

£40m loan to help pay for new homes in the Highlands

Half of the loan has been committed to building new homes

A company building affordable homes in the Highlands has signed a £40m loan deal with Royal Bank of Scotland so it can construct new properties.

Invergordon-based Albyn Housing Society said that once completed the homes would be offered for rent, or for sale as shared equity.

Half the loan has been committed to building 400 properties.

Albyn Housing said there were more than 10,000 people on Highlands Housing Register waiting for a low cost home.

Chief executive Calum Macaulay said: "This loan will help us work alongside the Highland Council and other housing associations to reduce this waiting list.

"We are committed to the development of low cost, energy efficient homes in communities around the region and to supporting and maintaining healthy communities."

Albyn Housing owns more than 2,500 homes for low-cost rent in about 60 communities in the Highlands.

The remainder of the loan is to "tidy up" previous loan arrangements with the bank.