The Department for Communities and Local Government (DCLG) expects work to begin on the new homes in March 2015, with completion expected by 2017, and anticipates that the funding will lead go the "fastest annual rate of affordable house building for 2 decades".
DCLG said that most of the affordable homes would be available at an affordable rent, with 2,000 homes available to buy as shared ownership.
"We are delivering yet another big step in the coalition government’s drive for the fastest rate of affordable housing we’ve seen for 20 years," said Deputy Prime Minister Nick Clegg. "It is vital that we build more affordable homes in Britain. The Affordable Housing Guarantees will help to increase supply, making sure good quality housing is available to hard working families across the country."
Housing Minister Mark Prisk said: "Today’s funding allocations will enable organisations across the country to hit the ground running, and play their vital role in getting Britain building and delivering the homes and jobs this country needs."
The announcement follows the London Mayor's launch earlier this week of a £137 million fund to deliver affordable homes in London. In its press release DCLG said the funding was part of its move to "get Britain building" and is part of the expanded £450 million Affordable Housing Guarantees, supporting its £3.5 billion guarantee scheme to boost affordable housing.
