A PROJECT to build hundreds of homes in Southampton is the first in the country to benefit from a new Government initiative.

Government ministers have announced the Centenary Quay scheme is the first in the UK to be partially-funded through the flagship £1 million Build to Rent scheme.

The funding is part of a £7.5 million investment by the Homes and Community Agency (HCA) in the £50 million development at the site of the former Vosper Thornycroft shipyard in Woolston, that will eventually feature 1,600 homes, shops, cafes and a new Morrisons supermarket.

Housing minister Mark Prisk said 102 new homes would be funded through the new initiative. Those homes will be built by developer Crest Nicholson and sold on to the A2 Dominion Group, which will privately let and manage them.

Welcoming the news city housing boss Warwick Payne said: “This is great news for the city.

“Centenary Quay is a model of excellence in partnership working between the HCA, Crest Nicholson and the council and this new funding highlights the benefits of this joint approach for the city.

“Centenary Quay is already helping to meet affordable housing need locally, as well as offering good opportunities for home ownership. This new funding will ensure quality private rented homes in a vibrant location for a significant number of residents.”