Proposals to provide around 350 new affordable homes in west Wiltshire have received Government backing, signalling a significant boost for the project.

Wiltshire Council's case for £77 million in investment through the Private Finance Initiative (PFI) scheme has been supported by the Housing Minister following a value for money review, meaning the final business case can now go to the government for approval.

If the contract is approved, the first phase of around 240 homes would be built in Trowbridge, Warminster, Westbury, Melksham and Hilperton by Devizes-based Sarsen Housing Association with Persimmon Homes and Westbury Partnerships. Plans to build a further 100 homes would also progress with the backing of the PFI investment.

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The housing PFI allows local authorities to work with private sector partners to build, improve and manage housing. It is administered in England by the Homes and Communities Agency (HCA), which has been working with the Council in support of its bid.

This scheme is one of 13 for which the Government signalled its continued support, subject to a value for money review, in November last year.

John Thomson, cabinet member for housing, said: "I am really pleased we have been able to work with the Government to ensure these 350 much-needed affordable homes can be built, despite the difficult financial times.

"It is especially important during the economic downturn that we are able to provide enough good quality accommodation for Wiltshire's residents."

The next step will see the council produce a final business case for the project, which must be signed off by the HCA, the Department for Communities and Local Government (DCLG) and the Treasury.

(CD/GK)