THOUSANDS of people awaiting affordable housing in Worcester received a timely boost when the Government pledged nearly £750,000 for new homes in the city.

Housing Minister John Healey made the much-needed announcement yesterday as part of a £250 million scheme to build thousands of affordable homes across the country.

Affordable homes are houses where the rent or sale price are kept artificially low to ensure first-time buyers and people on lower incomes have somewhere to live.

Worcester’s £735,000 grant will pay for just 15 new affordable homes in the city, however. The Government also announced funding for three affordable homes in Wychavon and 18 in Herefordshire.

Worcester’s Labour MP Mike Foster said: “This means more affordable homes for the city, and it’s a further £735,000 into the local economy – so there will be jobs created in the construction trade and a knock-on effect in other parts of the economy too.

“People are getting homes they need and the economy is being boosted at this critical time when we look as if we’re coming out of the recession, and so can’t afford to sit back. Investment in these sorts of public works are just what we need.”

Worcester’s desperate shortage of affordable housing is well-documented, and it was revealed last year that the city’s housing waiting list holds more than 3,000 names.

There was confusion last night over where the 15 new homes will be built, with neither Worcester City Council nor housing association Worcester Community Housing able to say where the development will be.

Housing minister Mr Healey said only that more than four-fifths of the new homes across the country will be for rental use, with the rest available to buy, and that work would start on many developments before the end of the year.

He said in a statement: “The £250 million funding will help tackle the shortage of affordable homes across the country, so associations can build the homes that families need. It will also provide a much-needed shot in the arm for construction jobs.”