Prescott: Hailing new housing boost

John Prescott has set out the latest developments in the government's plan to provide more affordable homes for key workers.

The deputy prime minister was joined by health secretary John Reid on Wednesday for the announcement of a deal to use over 100 surplus NHS sites for tackling housing shortages.

Under the scheme, the sites will be transferred to the Office of the Deputy Prime Minister to be used for new housing and regeneration projects.

Land included in the deal covers a total area of 1,650 hectares, and is expected to provide more than 15,000 new homes, with at least 5,000 of them affordable.

Money raised from the sale of the sites will be re-invested into the NHS to fund the expansion of front line services, said the government.

"This deal shows our determination to deliver more affordable homes where they are needed most, especially for key workers and young families," said Prescott.

"It will unlock major brownfield sites, secure more than 15,000 new homes, and kick-start regeneration as part of a comprehensive programme to create thriving and sustainable communities across all regions of England."

Reid said the NHS would gain from both extra cash and housing for employees.

"Much of the surplus land is in the south of England where there is a real shortage of affordable housing for key workers such as nurses, police, and teachers," he said.

"We currently have the biggest hospital building programme in the history of the NHS, but some of our land is genuinely surplus and for which there is no established long term NHS need."

The agreement was said to have been made possible following a decision by the DoH not to pursue a public-private partnership for the one-off sale of the retained NHS estate.

"ODPM and DoH have agreed in principle to the transfer of the portfolio but the details of the transaction and the price to be paid have still to be determined. The land is currently being independently valued," added a statement.