The government has announced an increase of £365 million to finance social housing, including a new £200 million challenge fund to provide 4,000 new homes for rent and low cost sale in the south east, writes Anabel Unity Sale.
Speaking at the annual National Housing Federation conference in Birmingham, housing minister Lord Rooker said the additional resources will see the approved development fund that attracts bids from housing associations, increase to £1.28 billion for 2003-04.
The challenge fund aims to provide affordable accommodation in high demand areas in London and the south east, which should include housing for key public sector workers.
Rooker said: "We will also expect to see a proportion to be allocated to key public service workers though we will leave it to the bidders to propose the mix between this and conventional social housing."
He added that more needed to be done to encourage people to stay in unpopular areas.
Housing charity Shelter warned that new affordable homes must be targeted to homelees families currently living in bed and breakfast and hostels.
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