Local authorities across England are being invited to bid for a share of up to £10m to help prepare their brownfield land for starter homes developments.
The grant funding is being made available exclusively to local authorities in England, ahead of the publication of the government’s Housing Bill.
It will be administered by the Homes and Communities Agency for councils outside of London, and by the Greater London Authority for those in the capital.
HCA chief executive Andy Rose said: “Helping people into home ownership and accelerating the supply of public sector land for housing are key government priorities, and we are ready to support our local authority partners in bringing forward sites suitable for Starter Homes delivery.
“We would encourage local authorities to take advantage of this funding and help take this important initiative forward.”
The starter homes initiative offers first-time buyers aged 40 or under a 20 per cent discount on open market value properties.
Local authorities have until noon on Monday 2 November to submit their bids for the £10m funding.
The news follows prime minister David Cameron’s announcement that councils must produce Local Plans for new homes in their area by 2017 or the government will intervene.
He said: “Councils have a key role to play in this by drawing up their own Local Plans for new homes by 2017, but if they fail to act we’ll work with local people to produce a plan for them.”