New homes will be built in deprived areas of Newcastle

The city has been given almost �7m from the Housing Corporation, the government agency which provides finance for housing associations.

Council bosses say the allocation for new schemes in 2003-04, will support the building of more than 100 new homes in the city.

It is Newcastle's biggest-ever allocation of its kind, and is the largest in the north-east of England.

The new homes include bungalows to rent in Cruddas Park, Fawdon, Newbiggin Hall, North Fenham and Throckley, and houses for people with special needs.

Ruth Robson, cabinet member for housing and regeneration on Newcastle City Council, said: "This major allocation shows that the government has confidence in the city council's regeneration plans.

"I am particularly pleased that schemes in the inner west and east of the city have been supported."