A hundred new homes could be built on sites around Norwich as part of a £10m scheme, partly funded using cash raised through the sale of council houses.

Councillors are today set to decide whether to hand a number of sites owned by Norwich City Council to social housing providers to build the homes. The locations have yet to be revealed.

The scheme is set to cost between £8m and £10m, could be partly funded using £2.3m to £3m of Right To Buy receipts.

Since 2012, the council has retained £8.5m of such receipts. Since 2011/12, the council has sold 422 council homes under the government scheme.

The ruling Labour cabinet will make a decision over the sites at its meeting today, although it will take place behind closed doors because commercially sensitive information will be discussed.

The cabinet is likely to agree to the disposal of the sites and for the Right To Buy funding to be offered.

But in return the council will seek rights for people on its housing waiting list to be offered places in the homes.

Councillors will also be asked to agree a more general policy to firstly spend Right To Buy receipts on the council's own housing capital programme. But, if the council does not expect to spend all the cash, it will pass it to registered providers.

Mike Stonard, cabinet member for resources and income generation said: 'The council has been very successful in identifying and attracting money to enable quality, affordable housing to be built for Norwich residents, either by ourselves or by others.

'We recently built the first new council houses in the city for over 20 years and have plans in train for many more.

'However, since we began this process, the picture has changed somewhat as a result of circumstances outside our control.

'The four-fold increase locally in the number of people who are exercising their right to buy, and recent government announcements of year-on-year cuts to rental income, will significantly reduce the amount of money the council has available to build new homes itself – but there are still things it can do.

'It's really important we use this money to help local people and none of it goes back to central government and that's what we intend to do.

'We are able to provide financial support to registered providers to build new homes locally and the report going to cabinet today proposes just that and sets out how we would assess potential schemes to ensure both value for money and that we continue to deliver our priority of 'decent housing for all'.'

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