South Kesteven District Council is to start building new council houses for the first time in almost 15 years, the authority has announced.
The move comes as the district council’s cabinet have agreed a budget of £1 million in the financial year beginning in April and a further £2 million during the following 12 months to build an estimated 30 new homes.
The last council houses in the district were completed in 1999.
Possible sites are still being examined but construction is likely to take place on council-owned land in Grantham and Stamford with work scheduled to begin in the summer and new tenants moving in a year later.
Leader of the Council, Coun Linda Neal, said: “We have ambitious growth plans to maximise the massive potential of our district and providing social housing is very much a part of our strategy.
“Building 30 homes is a modest beginning, but now that changes in housing legislation have been made that allow us far more flexibility this will signal the start of a building programme that will run for years to come.
“As well as providing much needed homes in our district, the programme will also generate scores of new construction jobs and secure many more through the purchase of materials and services.”
The council said existing council house tenants will also benefit as £4.9 million is to be spent improving existing homes with the money coming largely from external sources.
Coun Terl Bryant, portfolio holder for housing, said: “We are also budgeting £5.7 million on repairs and care services in 2013/14 and a further £6.1 million in 2014/15.
“Providing good housing for everyone is a priority for this council and the work we are doing in both the private and public sectors is clear evidence that we are making real progress towards our goal.”