Around 200 new homes in Bath, including at least 100 affordable homes, will be built thanks to a £6m investment from the Homes and Community Agency (HCA). Bath and North East Somerset Council has also pledged to investing around £2.7m in the new houses and apartments.
The new homes will be situated within the Bath Western Riverside development, measuring 44-acres, where as many as 3,500 new homes could eventually be constructed, along with various leisure, office and retail facilities.
David Warburton of the HCA said: "Bath Riverside has rightly been identified by partners as a top priority for HCA investment and support.
"The housing is an important element, as property values and restrictions on borrowing mean that demand for affordable homes is increasing in cities like Bath."
Mike Grist of Somer Housing Group, which would manage the affordable homes, said that there was a need for more new homes in the Bath area.
Grist commented: "Bath Western Riverside represents a rare opportunity to provide a significant number of new homes, affordable apartments and houses in central Bath."