More than £186m of funding, which was frozen by the new Government when it came to power, will be released to build 5,400 homes through Kickstart and Local Authority New Build funding grants.
The deal gives the green light to over half the schemes first placed under review, but still means more than 60 housing projects will fall by the wayside if they cannot secure alternative funding.
Housing Minister Grant Shapps said: “Times are tough, but we’re working hard to do all that we can to support the construction industry and revive housebuilding.
“Despite the strict measures we’re having to take to tackle the nation’s huge budget deficit, we’ve managed to safeguard funding for more than half of the previously unsecured housing schemes.
“This will mean that more than 5,000 new homes will now go ahead, supporting jobs and providing much-needed affordable housing for first time buyers and those waiting for a social home.”
Stewart Baseley, executive chairman at HBF said: “Kickstart investment produces immediate benefits in terms of local job creation, apprenticeships and economic activity and this money will boost communities across the country.
“The paybacks are enormous. This is especially good news for the industry, coming just as New Homes Month gets underway.”