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Plan for 6,500 affordable Welsh homes

Housing associations should be able to borrow over £100m to build new homes in Wales, according to a report the assembly government.

The study outlined how councils would also be expected to free up land for building 6,500 new affordable homes in Wales by 2011.

The assembly government commissioned the report, by former Labour cabinet minister Sue Essex to tackle the crisis in affordable housing in Wales. The report advocated that councils need to get better deals from developers, ensuring they provide more affordable housing in their plans.

Earlier this month a report by The Joseph Rowntree Foundation found average house prices were more than five times the average income in all rural local authority areas.