WINCHESTER City Council has welcomed news that the Government intends to boost housebuilding by raising the borrowing cap.

The Ministry for Housing, Communities and Local Government plans to raise the cap by up to £1billion in areas of affordability pressure for local authorities that are ready to start building new homes.

The news will boost the city council’s plan to build 600 new homes in the next three years.

Since 2012 160 homes have been completed, with 51 properties currently being built. In addition there are 78 further homes where construction will start later this year.

There will also be two consultation events in July for schemes for more than 100 new homes.

City council leader Caroline Horrill said: “I am delighted that the Government has raised the HRA borrowing cap. It is no secret that the Winchester district has expensive house prices but this will help us continue our work delivering schemes that are affordable so local people can continue enjoy the benefits of living in the Winchester without having to find homes in less expensive areas.

“We will look at how this money can benefit our schemes, and we will be submitting a bid in the next two months.”

Homes England has announced an increase of £1,670m in the social housing programme for England.