A FORMER mining town is in line for a £3m housing boost.

The Government has announced £3.3m of funding for a scheme to build 80 new homes at The Grange, in Bowburn, near Durham.

It is hoped the cash will help provide more affordable homes, support the construction industry through the recession and create jobs and apprenticeships.

Of the 80 homes, 49 will be affordable and ten will be bungalows for the Durham Aged Mineworkers Association.

The money pledged is part of the Government’s Kickstart programme, aimed at restarting stalled housing schemes.

In August, cash was also announced for projects in Brandon, West Rainton, Wingate and Peterlee.

Housing Minister John Healey said since June the Government had provided £1bn of funding for more than 8,000 new homes across the country.

Speaking at the Housing Market’s Intelligence Conference, Mr Healey said: "We promised more investment to build more homes and have put our money where our mouth is.

"This power of Government is helping to build the homes we need and support the construction industry during the recession. And crucially it’s also creating jobs and apprenticeships - meaning we will get the most for every taxpayer’s pound.

"I’m determined that this pace of investment will continue in the coming months when I will announce further cash for councils, housing associations and developers to ensure homes continue to be built."

The announcement was welcomed by Roberta Blackman-Woods, Labour MP for Durham City, and Pat Ritchie, regional director of the Homes and Communities Agency.

Dr Blackman-Woods said: "Durham has been in need of investment in housing for a long time, due to the failure of the former city council.

"I’m delighted that £3.3m will be invested in Bowburn to build these new, environmentally-friendly homes.

"I am particularly pleased that over half of the new homes will be affordable and aged miners’ bungalows."

Dr Blackman-Woods added the announcement followed funding announced in September for housing schemes in High Pittington, Witton Gilbert, Croxdale and a further project in Bowburn.

Ms Ritchie said: "This is very positive news for the North-East. It will not only help support the housing sector locally through jobs in construction but it will provide 80 much needed homes for local residents."