A total of 50 'affordable' homes are to be developed in the Fort William area, the Scottish Government has confirmed.

The properties are being made possible as the government is investing more than £2.5 million in charitable bonds.

Charitable bonds are ethical financial products; there is no profit is taken by Allia – a social investment charity who issues the bonds on behalf of the Scottish government. Allia have provided Lochaber Housing Association with a loan of over £2m.

The interest on the loan, which is more than £500,000, is converted into a charitable donation, which the Scottish Government gives to housing associations for the construction of new social housing.

Commenting on the investment, Housing Minister Kevin Stewart said: "Good quality, affordable housing is essential to help attract and retain people in Scotland's remote and rural communities.

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"We have committed to deliver 50,000 more affordable homes over the next five years, backed up with investment of more than £3 billion. Announcements such as this one today marks another step on road to delivering that pledge.

"Innovative financing schemes such as charitable bonds play a major role in helping us deliver this major expansion in housing supply. We invested £25 million last year and have committed to invest the same again this year and we remain the only Government in the UK to do so.

"Through these bonds we are also maintaining Scotland's leadership in financial innovation, working with partners to deliver more for less public investment."

Blair Allan, Chief Executive of Lochaber Housing Association, added: "We are delighted to have secured access to this Scottish Government backed charitable bond.

"This sort of flexible and unsecured lending is ideal for a small housing association such as us, enabling the Association to continue to plan and deliver even greater numbers of affordable housing opportunities to address the area's acute housing needs.

"Partnering with our Allia colleagues on this innovative funding model has been very straightforward, and we look forward to enjoying our continuing and productive working relationship with both them and the Scottish Government into the future."

(JP/CD)