MORE than £1.6m could be spent on new affordable housing in Southampton.

Labour city council bosses have £1.68m of funding raised from sales through the Right to Buy scheme which must be used to build new homes.

The money had been earmarked for use on a £10m overhaul of the Erskine Court sheltered housing facility.

But a change in Government rules means it cannot be used alongside Housing Revenue Account money – council house rent – which forms part of the funding for the work at Erskine Court.

Therefore the council will work alongside housing associations in the city to look at opportunities to build new affordable housing with the funding.

The associations would be expected to fund 70 per cent of any new development, with the remaining 30 per cent being funded by the council cash.