Local authorities today revealed their appetite for building new social rented homes through the first results of a £460 million bidding programme managed by the government's Homes and Communities Agency (HCA).

The national housing and regeneration agency has given the go ahead to 47 local authorities in England to receive grant funding totalling £127 million to build up to a total of just over 2,000 new homes. The announcement was made by Housing Minister, John Healey, today.

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Sir Bob Kerslake, Chief Executive of the HCA said that the superb response to the Local Authority New Build programme (LANB) "marked a new era in affordable house building".

Speaking after the Minister's announcement Sir Bob said: "The reaction to this funding programme by local authorities has been outstanding and proves that councils are geared up, confident and enthusiastic about developing their own homes. LANB is another important stimulus to the housing market, empowering councils and allowing them to call the shots when it comes to local housing needs."

The first round announcement will see 205 schemes receive funding with the largest number of homes due to be delivered in Yorkshire & Humberside (453). Bidding, which closed at the end of July, was open to local authorities to deliver new social housing on land they already own, prioritising schemes that offered higher energy efficiency standards.

(CD/GK)