The deal with the Albyn Housing Society will be a major boost for contractors across the region where 11,000 people are currently on the housing waiting list.

Half of the Royal Bank of Scotland money will be invested in the development of houses for shared equity sale or low cost rent.

Work will include 42 new homes in partnership with Robertsons at Westercraigs, Inverness, as well as smaller projects at Inverdruie, near Aviemore.

There are also plans for the development of a major site at Alness, which will include low-energy housing.

The other half of the loan will be used for refinancing Albyn’s current loan facilities.

Albyn chief executive Calum Macaulay said: “We have been working with RBS to renegotiate our current facility and secure additional development funding to enable us to help address the demand for affordable housing in the Highlands.

“We are committed to the development of low-cost, energy-efficient homes in communities around the region and to supporting and maintaining healthy communities.”

Ian Sillars, RBS’s head of housing finance in Scotland, said: “Lending of this type has the added value of supporting the home-building sector and some of the ancillary businesses which have been severely impacted by the economic climate over recent years.”