Newcastle-based Karbon Homes announced it is entering into a strategic partnership with Homes England which will provide £131.5 million in funding to deliver 2,200 new affordable homes over the next few years.

“The partnership enables Karbon to bring much-needed affordable homes to both urban and rural locations across the North East and Yorkshire, to meet local housing need,” said the Gosforth Park company.

“The 2,200 homes will be equally split into homes for affordable and social rent, including homes to meet a range of supported and specialist needs, as well as homes aimed at helping local people onto the housing ladder, either through shared ownership or the Rent to Buy scheme.”

As part of the agreement with Homes England, Karbon has pledged to use modern methods of construction to build a quarter of the new homes, enabling faster construction times and a reduction in energy use and waste.

Karbon has committed to building at least 220 new homes — 10% of this programme — in rural areas and a further 220 homes (also 10%) for people requiring additional support needs.

Karbon Homes CEO Paul Fiddaman said: “We’re delighted to be entering into this strategic partnership which will enable us to provide additional affordable homes across the North East and Yorkshire.

“We have a strong track record of delivering good quality, affordable homes and this will enable us to continue to grow our housebuilding programme and to deliver a wide range of homes, for a range of tenures, that will meet customer needs and strengthen local communities.”

Homes England is entering into 31 new strategic partnerships with 35 organisations to deliver nearly 90,000 new affordable homes across the country.

Nearly £5.2 billion of the £7.4 billion funding in the Affordable Homes Programme 2021-26 that Homes England is responsible for will be delivered via these partnerships.

All homes built under the programme will meet National Design Guide Principles and will incorporate environmental sustainability measures.