The appetite for council house building is stronger than ever, according to the Homes and Communities Agency (HCA), which confirmed that 73 local councils in England will have access to over £230m of funding under Round II of its Local Authority New Build Programme.

The funding, made up of £122.6m grant from the HCA and matched by a similar figure of borrowing by the local authorities, will see over 1,900 new council homes built, many of which will be larger family-sized homes.

Priority was given to schemes offering high energy efficiency standards and over 90% funded today will meet Level 4, or higher, of the Code for Sustainable Homes. As a result at least 7,900 people on council waiting lists will have a quality new home at a rent they can afford, with lower energy bills and a reduced impact on the environment.

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Sir Bob Kerslake, Chief Executive of the HCA, said: "The level of interest has been tremendous and demonstrates the appetite of local authorities to lead directly on affordable housing supply. Deciding between the bids has been challenging, but the outcome is a really strong set of schemes that meet a high standard. I am particularly pleased with the number intending to deliver to a higher energy efficient standard."

The 1,900 new homes will be built on 164 different sites, many of which are disused such as former garages, helping to remove the blight of dereliction from communities.

Every region in England has received funding, with around 40% of the new homes to be built in the North, 36% in the South and 24% in the Midlands. Nearly 200 of the homes will be for rural communities, where housing affordability has been particularly hard hit.

The HCA received bids for funding from 86 local authorities under Round 2 of the Programme, which was oversubscribed by approximately £240m. Each bid underwent a rigorous assessment process focusing on value for money, fit with local priorities, quality and speed of delivery.

(CD/BMcC)