SOUTHAMPTON is to receive a cash boost of more than £10m to help build more than 200 affordable homes in the city.

The cash, which will pay for 212 homes, will go towards the council's programme to make sure 1,000 affordable homes are built in the city by the end of 2007.

The huge cash injection will be used by local housing associations and the council to help ease the acute shortage of affordable homes in the city.

A grant of £4,159,931 has been given to the council from the government's Housing Corporation approved development programme.

That money will be used to build 80 new affordable homes in the city, including schemes in Northam and Lordshill.

A further £6,038,228 has also been awarded to the city from the corporation's challenge fund.

That cash will be used by local housing associations and the council to build a further 132 affordable homes. Twenty-six will be developed for key workers such as policemen, firefighters and teachers to rent.

A further 67 will be for sale at a low cost and the remaining 39 available for rent through housing associations.

The news comes as the price of the average family home in Hampshire soared to more than £170,000.

The council aims to ensure at least 250 affordable homes are built in the city each year to meet demand.

Both schemes will provide a mix of rented and shared ownership homes. The council aims to apply for further funding from the corporation next year to continue with its ambitious programme.

Nick Murphy, executive director of housing, communities and regeneration at the city council, said the funding announcement was terrific news for the city.

"The city council is committed to providing more affordable homes in the city every year and we work very hard with all of our housing partners to ensure that the shortage of this kind of accommodation is addressed.

"Last year we were delighted to sign an agreement with five local housing associations, pledging our commitment to work together with an aim of developing 1,000 brand new affordable homes in Southampton by 2007.

"This funding will take us a step nearer to achieving that goal."