Councils and developers have been invited to bid for a share of £50m for stalled locally-led housing developments.
The investment will be made available in 2015/16 through the government’s Local Growth Fund and will be aimed at schemes of between 250 and 1,499 units.
The fund will operate in a similar way to the Local Infrastructure Fund, in the form of recoverable capital to the private sector, and will be procured on an open competition basis.
Communities secretary Eric Pickles said: “We’ve delivered 420,000 new homes since 2010, including 170,000 new affordable homes. I’m determined we go even further.
“[This] multi-million pound package will help get workers back onto locally-led housing developments that had been stalled with the end of the unsustainable housing boom in 2008 and deliver the homes and local growth communities want to see.”
This is in addition to a further £1bn fund that was launched this month to help developments of at least 1,500 units in size, progress.
The money will be available to developers in the form of a loan and will support projects over a six year period.