Home Group has reportedly secured a £41m loan to fund new housing stock.

The loan will see hundreds of new affordable homes added to the stock, as well as offering improvements to the current stock.

According to Scottish Housing News, the European Investment Bank has supported the loan and brings the amount borrowed by the group since December 2013 to more than £100m.

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Last year, the organisation raised a £44.5m loan from the Housing Finance Corporation. This was funded by the Department for Communities and Local Government and the European Investment Bank. Then in May 2014, Home Group was able to access low interest funding from an 'AAA' rated bond of £208m.

The company was one of 13 housing providers selected by Affordable Housing Finance to access the funds. Subsequently, Home Group – and its Home Scotland subsidiary – secured the largest amount of funding at £30.7m.

Austin Woods, Home Group director of legal, commented: "As a not-for-profit housing provider it's important to us that we can access funds at the best rates to help us provide the affordable homes so desperately needed in the UK."

(JP/IT)