The two semi-detached three-bedroomed houses in Spalding were commissioned by South Holland District Council.

The properties have been built at a cost of under �60,000 each to comply with government recommendations.

The council said more are to follow over the next few months, as housing associations in the area cannot keep up with demand.

Council leader Gary Porter said: "We are short of about 300 houses a year in the affordable bracket and most of those need to be in the rented sector.

"Unfortunately, the Housing Corporation has not been over-generous with its funding allocations to this part of the world.

"We believe as a rural authority we are least well served compared with urban areas and this is one method of trying to address the problem."