A HOUSING group has secured the biggest European Union Bank loan deal in Scotland to build thousands of new homes.

Wheatley Group, which includes Glasgow Housing Association, has borrowed £185million from the European Investment Bank to spend on a construction and refurbishment programme.

Nicola Sturgeon, First Minister, announced the loan deal with Wheatley at an event in Glasgow.

The new homes will be built in Glasgow, and at sites in Balloch, Dumbarton and in Edinburgh and West and East Lothian.

The First Minister met staff and apprentices at Reidvale in Gallowgate where GHA is building almost 150 homes.

She said the deal was proof that Scotland benefited from the European Union.

Ms Sturgeon, said: “Ensuring people have access to quality housing is a fundamental part of building a fair and equal society.

“That is why we have committed to deliver at least 50,000 new affordable homes in the five years to 2021.

“Wheatley Group is vital in helping us achieve that, having delivered almost 1,900 new affordable homes across Scotland over the past three years and the additional funding from the European Investment Bank will help them build on this.

“It is also another reminder of how Scotland benefits from the EU and its institutions.”

The Glasgow based organisation is planning to build up to 3000 more homes on 60 sites across Scotland.

The loan from the EIB will contribute towards a four year building programme of around 650 homes a year from 2021 to 2025.

Alastair MacNish, Wheatley Chair, said: “It will help us to consolidate our position as the UK’s largest builder of social-rented homes, which we hold close as a badge of honour at a time when the availability and supply of affordable housing is such an acute priority.”

The group said it will invest £400m over the next three years in affordable housing.

Jonathan Taylor, EIB Vice President, said: “New investment in social housing is crucial to increase the number of affordable homes and cut heating bills in existing properties.

“The European Investment Bank supports social housing investment with leading housing associations across Europe and is pleased to back transformational investment here in Scotland by Wheatley, the largest builder of new social housing in the UK.