The Housing Corporation is looking at ways of making it easier for the private sector to bid for public money to build affordable homes.

The corporation has set up a review of the way it awards social housing grant, which was made available to developers for the first time this year, after criticism from developers that its procedures are overly bureaucratic.

Just 1.6% of the corporation's £2bn 2006/08 programme went to private housebuilders, partly because many dropped out part way through the application process.

A 15-strong group headed by Stephen Douglas, the corporation's deputy chief executive, will submit its findings in the autumn.

Douglas said: "The review will help us to look at how further flexibilities may help to speed up supply and improve value for money, while maintaining the highest standards."

The industry's representatives on the group are Andrew Whittaker, the Home Builders Federation's planning director, Clive Fenton, a director of Barratt Developments, and Terry Fuller, a director of Taylor Woodrow Partnerships.