Affordable housing in Teignbridge is to benefit from a £5.5 million funding boost expected to deliver around 200 new homes for rent and purchase over the next two years.

In one of the biggest grants from the Housing Corporation, Teignbridge Council has been awarded £4.058 million for projects up to 2008. In addition, the council – which is prioritising affordable housing – is ploughing in a further £1.5 million. More money is coming from Devon County Council through its share of the second homes council tax scheme.

Work is progressing on a variety of schemes such as the 72-unit mixed-use (affordable housing, rented, affordable shared equity and open market) project at Drake Road, Newton Abbot, and a further 30 in the town's Bradley Lane, near the new Asda development.

Smaller schemes are also backed and construction has been started by Hastoe Housing Association on two family houses for rent close to the village centre at Kenton. With 4,200 on the housing register, Teignbridge is working hard with housing associations, county, town and parish councils as well as the Housing Corporation to identify new schemes and get them funded.

'Teignbridge is also actively seeking small sites in and around villages so it can put together small projects which will help meet genuine local housing need and support young people remaining in their own communities,' said Cllr Alan Connett, leader of the council. Since 2004, Teignbridge has made provision for 441 affordable houses and allocated funding of £2.9m.

Cllr Brian Berman, Teignbridge spokesman for planning and housing strategy said: 'Good quality local homes are a priority for our residents and confirmation of the Housing Corporation's grant is very exciting for the district.

'Coupled with Teignbridge's own investment in local affordable housing, the news will see nearly £6m being spent on local housing schemes over the next two years.' The Drake Road scheme – a partnership by the council, the county council, Millwood Homes (Devon) Ltd and Sarsen Housing – will deliver 72 new homes in addition to vehicular and pedestrian access ways, play areas and improvements to existing play pitches. It involves 29 affordable rented houses, 14 affordable shared equity houses, and 29 open market houses, all with a mix of two, three and four- bedroom houses. It follows other local successes such as the building of 13 shared ownership houses at Buckfastleigh in partnership with Westcountry Housing and six at Ogwell with Signpost Housing Association, just some of the 56 new homes delivered last year. Cllr Brian Greenslade, leader of Devon County Council said: 'The issue of affordable housing is an enormous problem in Devon and I am delighted to see projects such as Drake Road getting under way. Devon County Council was the only first tier local authority to commit all its second homes council receipts in 2004/5 for housing investment.' David Luke, of Sarsen Housing Association, added: "This is partnership working at its best, with funding and support from Teignbridge Council, Devon County Council and the Housing Corporation, and expertise from local developer Millwood Homes.' Work is expected to start on site on the Bradley Lane, Newton Abbot scheme in August. Schemes already under construction include Duckspond, Buckfastleigh (13 units); County Garage, Teignmouth (17 units); Cannon Road, Heathfield (16 units); Ted's Garage, Newton Abbot (23 units); Westwoods Farm, Ogwell (six units) and Sunnybank, Kenton (two units).