Deputy First Minister Nicola Sturgeon has announced a £1.8m injection for four house building projects.

The money will be generated from a loan fund designed to kick-start stalled construction sites.

The news marks the second tranche from the £10m House Building Infrastructure Loans Fund, announced in September 2011, which is expected to support over 1,000 new homes.

Building firms are being encouraged by the Scottish government to apply for repayable loans to finance physical infrastructure such as roads, sewers, pipes and cables.

This latest phase will see a total of 270 new homes built in Newtongrange, Edinburgh and Irvine.

The deputy First Minister will also announce on Tuesday that the Scottish Government has updated its multi billion pound Infrastructure Investment Plan (IIP).

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It details the infrastructure projects and programmes worth more than £20m that are planned and underway across Scotland from now until 2030.

Ms Sturgeon said: "This fund is designed to help in specific cases where building firms have been unable to secure private-sector finance to help fund the necessary supporting infrastructure to enable construction to get underway.

"The criterion for the second round of funding was revised to untie red tape so that more companies could come forward with their infrastructure proposals.

"As a result, the latest successful applications will lead to diggers rolling back in on sites across Scotland.

"Tomorrow I will publish an updated Infrastructure Investment Plan, illustrating our ambitions for investment in Scotland’s infrastructure right up until 2030. That will be a further boost for the construction industry, helping them plan for the future too."

Jane Innes Smith, managing director of Springfield Properties Limited said: "The Scottish Government’s package around shovel ready projects recognises the importance of house building to economic recovery and it’s great to see it actually working for ordinary people.

"This loan means we can get on with the development, creating 60 new jobs on site and generating business and work for our suppliers."

(IT)