Some 69 different housing associations and developers will each receive a share of the funding and work on the new properties will be started by March 2015 and completed by 2017.
The move is part of wider government efforts to get Britain building, which will lead to the fastest annual rate of affordable house building for two decades.
Of the almost 14,000 homes this money will help deliver, the majority will be available at an affordable rent with 2,000 of those available to buy through shared ownership.
Housing associations and developers who plan to use the guarantee scheme will now work with the Affordable Housing Finance to finalise the details of the loan funding that will work alongside today’s grant allocations.
‘I am delighted that 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. 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,’ said the Deputy Prime Minister Nick Clegg.
Housing Minister Mark Prisk said that the Affordable Housing Guarantees are part of a wide range of measures to get Britain building. It also includes £19.5 billion public and private investment in an affordable homes programme that is on track to deliver 170,000 new homes by 2015 and £3.3 billion announced at the Spending Review to support the delivery of 165,000 new affordable homes from 2015.
In addition there is £474 million to help unlock stalled, locally supported large scale development sites and so far, the programme has helped get work restarted on nearly 50,000 new homes, and £1 billion in a Build to Rent fund, to help build homes specifically for private rent.
‘I am pleased to announce the first wave of allocations through this programme with £220 million government funding to help deliver almost 14,000 new homes. The 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,’ added Prisk.