Wiltshire Council’s case for £77m of PFI investment has been supported by housing minister Grant Shapps allowing the final business case to go to the government for approval.

The PFI housing plan is the second major scheme to pass through the vetting procedure with flying colours after a £155m scheme for 1600 homes in Salford won clearance earlier this month.

Persimmon Homes’s affordable housing arm Westbury Partnerships will build, the first phase of around 240 homes  in Trowbridge, Warminster, Westbury, Melksham and Hilperton.

Plans to build a further 100 homes would also progress with the backing of the PFI investment.

The Salford and Wiltshire schemes are two of 13 that the Government signalled its continued support, subject to a value for money review.

John Thomson, Wiltshire cabinet member for housing, said: “I am really pleased we have been able to work with the Government to ensure these 350 much-needed affordable homes can be built, despite the difficult financial times.

“It is especially important during the economic downturn that we are able to provide enough good quality accommodation for Wiltshire’s residents.”

The next step will see the council produce a final business case for the project, which must be signed off by the HCA, the Department for Communities and Local Government and the Treasury.

HCA executive director for the South and South West, Colin Molton, said: “It’s great news that the Government has signalled its continued support for this project, which has the potential to make a huge difference to local communities across Wiltshire.

“We look forward to continuing to work with the council to finalise the agreement and move this through to the next stage.”