Funding has been announced to kick start the development of two major new housing projects in South Wales that will create a high proportion of affordable housing, around 2,300 jobs and deliver an economic boost of around £225m.

The new residential developments are proposed for the 39-acre former steelworks site at Whiteheads, Newport – which will also support delivery of a new primary school – and a 16-acre site at Eirin Park, Tonyrefail.

Announcing the funding, Economy Minister Edwina Hart said the Welsh Government has agreed a £7m loan to the Whiteheads Development Company and a £1m loan to the Parc Eirin Development Company to expedite the delivery of these schemes.

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Both are subsidiaries of Tai Tirion, a not-for-profit organisation established following an initial alliance between Welsh Government and Principality Building Society to deliver high quality affordable homes across Wales. The independent charity will recycle all proceeds from the developments into other similar projects around Wales.

The Minister said: "Subject to planning permission these two new projects are anticipated to create around 2,300 jobs and deliver an economic benefit in the region of £225 million to the local economies. These are significant figures that will support job creation in the construction industry as well as businesses within the supply chain.

"They will also help transform brownfield sites into thriving communities and provide affordable homes in places where people want to live which are within the financial reach of young families and lower income families.

"I am also delighted Welsh Government is working with the private sector and social enterprises to create this innovative model that can be replicated and rolled out to other areas across Wales."

The Whiteheads and Parc Eirin developments are the latest additions to the Tai Tirion portfolio, which also contains The Mill, a £100m affordable housing development on the site of an old paper Mill in the centre of Cardiff.

(CD/JP)