The Cambridgeshire and Peterborough Combined Authority has agreed to work with a coalition of 15 housing associations to deliver up to 40,000 affordable homes.

Cambridgeshire and Peterborough will use their specific housing grant of £170m to work with Homes for Cambridgeshire and Peterborough to build housing of mixed tenure, including affordable rents.

They plan to build at least 2,000 additional affordable homes by 2021, and 40,000 by 2038.

Cambridge is the third most expensive place to buy a home in the East of England, according to the Home Truths 2016/2017 East of England report.

The average house price is nearly 17 times the average local salary.

Homes for Cambridgeshire and Peterborough, which is made up of 15 housing associations, collectively own and manage 48,277 homes in the Cambridgeshire and Peterborough area.

As part of the new deal, they have agreed to match every £1 of the combined authority’s investment with up to £6 of their own.

‘As the first devolved authority to be established with its own housing grant programme, this is a ground-breaking collaboration for Cambridgeshire and Peterborough,’ said Alan Lewin, chair of Homes for Cambridgeshire and Peterborough.

‘This region is unique amongst devolved areas due to its diverse mix of urban and rural communities, ranging from world class high-tech business centres to small, agricultural communities.

‘The housing associations in Homes for Cambridgeshire and Peterborough will work together with the combined authority, local authorities, and Homes England to provide diverse quality homes, including housing let at affordable rents, mixed tenure, and outright sale.

‘This will ensure there are homes for people on a range of incomes, while also supporting sustainable growth in our urban and rural communities.’

Cllr Peter Topping, portfolio holder for new homes and communities at the Cambridgeshire and Peterborough Combined Authority, said: ‘We know we need to build more homes across Cambridgeshire and Peterborough, and particularly increase the amount of affordable housing we have.

‘This is a step towards making this happen so that our children can look forward to making their own homes here, in the communities they’ve grown up in.

‘Housing associations are a key partner in bringing affordable housing forward, so it’s great news that we now have this shared set of objectives to work from.

‘I welcome the commitments made by Homes for Cambridgeshire and Peterborough in this statement and look forward to working with them to ensure we see some real results as quickly as possible.’