Prescott launches £22bn affordable housing programme

Deputy prime minister John Prescott has today (Wednesday) launched a £22bn, three-year programme to invest in more affordable housing, rundown and deserted areas in the North and Midlands and social housing projects.

Announcing the proposals, Prescott said, "A step change is essential to tackle the challenges of a rapidly changing population, the needs of the economy, serious housing shortages in London and the South East and the impact of housing abandonment in the North and Midlands."

Prescott said the proposals aim to "drive forward thriving and sustainable communities for this and future generations".

He added: "Today I am setting out the policies, resources and partnerships that will achieve this change - providing essential housing for key workers, improving the condition of houses, improving the local environment and protecting and increasing our precious greenbelt."

The programme includes: £5bn for more affordable housing including £1bn for homes for key workers; £300m to encourage modern build housing; £500m for deserted and rundown housing areas in the North and Midlands; £2.8bn to improve social housing; and £201m for improving the local environment.

Prescott also pledged that tackling housing shortage would not be achieved at the expense on the green belt.