As part of the Government's Building Britain's Future plans, Housing Minister John Healey has said that construction of thousands of extra homes will begin in a matter of months, thanks to the £1.5 billion pound housing investment announced earlier by the Prime Minister.

The Housing Pledge places councils centre-stage, building more homes more quickly while creating thousands of jobs in the construction industry. Changes to the rules for allocating housing will also give councils a bigger role meeting the needs of people in their area. The Pledge also includes commitments to improve access to social housing by providing tenants and prospective tenants with more choice over the properties available, and commitments to clamp down on those cheating the system, so that more properties are available for those who play by the rules.

The £1.5 billion boost will deliver an additional 20,000 new affordable energy efficient homes over the next two years - and a further 10,000 homes delivered through the private sector. Councils and housing associations will both have a key role in delivery of the new affordable homes. This money will also extend our programme to get stalled housing projects back on track and prepare public sector land for construction of new homes as well as provide up to 45,000 new jobs in the construction and related industries.

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The announcement comes before John Healey will outline proposals to allow councils to keep all the proceeds from their own council house sales as well as their rents when he announces the outcome of the Review of Council Housing Finance.

Mr Healey added that people must believe they have a fair chance of living in these new homes. While preserving security of tenure, changes therefore will be made to the way housing is allocated to allow local authorities to give more priority to local people and those who have spent a long time on a waiting list.

Reforms to be published later this year will ensure the system provides a good start in life for young people, improves employment prospects and offers tenants more choice. And there will be tougher anti-fraud measures to stop people cheating the system through illegal sub-letting, thereby freeing up more homes for those in need.

Mr Healey said: "The Prime Minister's housing pledge today is a huge boost to efforts to build more homes the country needs now and in the future. This investment will help fast track construction and I want to see work starting on site within the next few months.

"Alongside the significant increase in housing stock we will also work with councils to ensure the social housing system is responsive to local priorities and preferences.

"Together these announcements signal my intention to get local authorities involved in delivering more housing that their local area needs. Councils haven't built significant numbers of housing for a long time, but with this extra cash and an overhaul of the council house funding system I am giving councils the green light to start building more homes in their area. And we are putting our money where our mouth is to fund new Housing Association developments, get mothballed housing projects back on track, and free up public land for more affordable homes.

"In these tough economic times this is also a much needed shot in the arm for the construction industry creating 45,000 new jobs in Britain that will be key to the country making the most of the recovery over the next few years.

"When people see these new homes being built in their communities they need to believe that they or people they know have a fair shot at living in them. That's why I'm bringing in changes to the councils lettings system, to protect people's security as tenants but allow councils to give greater priority to local people, and those who have spent a long time on a waiting list, as well as can give tenants more choice."

(CD/JM)