Local government was this week given the green light to begin the biggest council house-building programme since 1992.
Housing minister, John Healey, announced on 8 September that more than 2,000 council houses would be built by 47 local authorities in every region of the country.
Mr Healey said: ‘It means that, despite the tough economic climate, the biggest council house-building programme for almost two decades will begin by the end of the year.
‘This boost for affordable housing will help build the homes we need, and it's also a shot in the arm for the construction industry, creating more than 5,000 jobs.'
It is part of prime minister Gordon Brown's £1.5bn Housing Pledge – a key part of Labour's plan to inject cash into major public projects during the recession.
The CLG will provide £127m in funding, which must be matched by councils, bringing the total investment to more than £250m. Only bids for the construction of new council houses for rent – a long-term need across local government – were considered.
CLG officials have not yet announced the full list of councils set to receive cash under the programme. But a regional breakdown of funding allocations shows councils in London will get the most, with six building projects receiving a combined £29m .
Other regions to receive significant funding include Yorkshire and Humberside (£27m), the North West (£17m), and east Midlands (£12m).
Mr Healey claimed ‘councils are better placed than for decades to meet the housing needs of their communities'.
Sir Jeremy Beecham, LGA vice chair, said the new projects would ‘not see a return to stereotypes of poorly-designed, monolithic council estates'. ‘These homes will be built to a high environmental and quality standards in attractive, mixed communities to meet the needs of local areas for years,' he added.
An LGA report also revealed the bid process for house-building programmes ‘could be over-subscribed'. It states: ‘The increased scope for councils to deliver new homes will help some town halls get their house-building plans off the ground. But councils have the appetite and ambition to do much more.'
