Almost 1,600 new affordable homes are to be delivered across the south of England as part of a four year agreement between the Homes and Communities Agency (HCA) and a number of housing providers.

The HCA has agreed a contract with the Wayfarer Partnership, which will see partners deliver around 1,300 new homes across Hampshire, 120 in Surrey and more than 70 in Berkshire, alongside new schemes in parts of Sussex, Wiltshire and Dorset. This will be supported by investment of around £20.5m from the HCA.

The agreement is part of the HCA's Affordable Homes Programme, which is set to deliver 80,000 new affordable homes across England by 2015. It will make a major impact on affordable housing provision across the counties, where average house prices have been recorded as being more than 12 times the average local salary in some areas.

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While some of the investment will support new homes on identified sites, around 470 homes will be provided on locations which are to be agreed as part of the four-year programme.

The contract will also see 165 homes for older people built in Hampshire, Berkshire and Surrey.

The Wayfarer Partnership bid was led by Radian Housing Group and includes First Wessex Housing Group, Rosemary Simmons Memorial Housing Association, Petersfield Housing Association, Havant Housing Association and Raven Housing Trust.

HCA Executive Director for the South and South West Colin Molton said: "This agreement is great news as it will see much needed new homes delivered and make a significant difference to the local communities in which we work.

"Our local teams have worked closely with the Wayfarer Partnership over recent months to ensure that its programme brings the maximum benefit for local people. But, in many ways, the hard work starts now, and we will be focused on ensuring that people see the benefits of our investment over the next four years."

(CD)