The Grandhome Trust is set to build more than 600 houses in Aberdeen after a £7.9 million housing loan provided by the Scottish Government.

This is phase one of the Grandhome site which has been given planning permission in principle for a 4,700 home community that will include leisure, retail, commercial and public space.

For 2016-17, the Scottish Government’s Housing Infrastructure Fund has up to £50 million of loan and grant funding available to help unlock strategically important housing sites throughout Scotland.

This year, Aberdeen City has already had their Affordable Housing Programme allocation pushed up to £10.9 million, which is an increase of 70% on last year.

The Housing Infrastructure Fund is also considering other projects from throughout Scotland.

Housing Minister Kevin Stewart paid a visit to the Grandhome site and he commented: “I am really pleased the first loan from this important Scottish Government fund is being used to unlock a key housing site. The first phase of 600 homes will include at least 90 affordable homes.

“Today’s announcement underlines this Government’s determination to increase the pace and scale of development to deliver more homes. I look forward to further loans and grants being granted to projects across Scotland.

“We have listened to our partners and are putting in place measures to support the increase in the supply of homes across all tenures, support jobs in the construction industry, and encourage inclusive growth in the wider economy.

“We have committed to deliver 50,000 more affordable homes, with 35,000 available for social rent, over the next five years, backed up with investment of more than £3 billion. Projects such as this one today marks another step on road to delivering that pledge.”

Meanwhile, Grandhome Trust trustee, Bruce Smith, said that the new community of Grandhome has been in the planning for over 10 years and the delivery of phase one infrastructure is a key milestone for them.