English Partnerships has purchased nearly 100 NHS sites and is reviewing another 700 for the proposed development of affordable homes.

The regeneration agency is also looking at land owned by the Ministry of Defence and vacant public sector sites next to railway stations in London.

In addition, Deputy PM John Prescott has announced a further three sites for the design for manufacture competition that challenges housebuilders to design homes with a construction cost of £60,000.

The sites, which are all ex-NHS land are located in: Renny Lodge, Newport Pagnell; Park Prewett, Basingstoke and Laybourne Grange, Maidstone. It is intended that these sites will provide nearly 400 new homes.