The deal provides 379 affordable homes on sites across the country for families who would otherwise be on waiting lists, following the agreement between the Homes and Communities Agency, Bovis Homes, and a number of Housing Associations.
This means that 4800 homes in total have now been brought into use as affordable housing for a total of £160million, with more deals in the pipeline.
Housing Minister Margaret Beckett said: "We are determined to support house builders to weather the current difficult climate, and this deal will help industry while also providing more affordable homes for families on waiting lists.
"This is one part of a range of measures we are taking to help ensure stability and security for those affected by the downturn, and we will continue to look at what more we can do."
Chief Executive of the Homes and Communities Agency Sir Bob Kerslake said: "By being flexible with our funding we have secured more much-needed quality new homes – for affordable rent or sale to local people priced out of the market – and maximised value for public money.
"And while I am pleased with this early success for the HCA, there is much more to be done as we seek to stimulate development and help maintain the housebuilding industry’s capacity through difficult economic conditions."
Chief Executive of Bovis Homes, David Ritchie, said: "Bovis Homes has formed a strong relationship with the Homes and Communities Agency and our partner RSLs through combining our mutual interests in housing delivery. The deal reported today has been made possible due to this relationship and demonstrates the positives which can be achieved when different organisations in the housing industry work together effectively.
"We are pleased to have been able to contribute significantly to housing delivery under the Government’s programme whilst at the same time providing positive returns for our shareholders.
"Thanks must go to the many staff at Bovis Homes who have worked hard to make this deal happen, plus our thanks to our RSLs partners and our colleagues at HCA."
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