FUNDING of £94m will be pumped into the region over two years to tackle its most pressing housing problems, it was revealed last night.

The North-East Regional Housing Board, set up this year, has received the Government cash to create decent and affordable homes for everyone.

The board will give more funding to local authorities in greater need. Its chairman, Government Office North-East director Jonathan Blackie, said: "The North-East has unique challenges and we are tackling the priorities.

"We believe this investment will make a real difference to the quality of life for the people of this region."

Housing Minister Keith Hill last night welcomed action to tackle the most severe housing problems blighting the region's communities.

He said: "Good quality housing is the cornerstone to successful, sustainable communities, and each region must have some freedom to identify their most pressing problems in order to get this right."

Local authorities in the North-East will be allocated a total of £46m for 2004-2005 and provisionally nearly £48m for the following year.

Priorities include developing housing to meet 21st Century demands and replacing empty houses with high-quality housing.

Existing local authority houses will be improved and maintained, and specialist housing needs, such as people being able to afford homes in rural areas, will also be tackled.

The biggest windfall will go to Sunderland, which will be given £9.5m to tackle housing problems next year, followed by Stockton with £7m.

Next year, Chester-le-Street will receive £290,000, Darlington £1m, Derwentside £1m, Durham £831,000, Easington £2m, Hartlepool £2m, Middlesbrough £2.5m, Redcar and Cleveland £1.5m, Sedgefield £655,000, South Tyneside £2m, Teesdale £213,000, Tynedale £340,000 and Wear Valley £2m.