Private developers are to receive just 3% of the government’s £3.3bn allocation of grant for affordable housing.

Social housing quango the Housing Corporation this week listed which organisations would receive a share of the first slice of the £8.4bn for new affordable housing available over the next three years. London housing association L&Q received the most with £120.5m.

Despite attempts to persuade private developers to build affordable housing, the allocation shows housebuilders given just £56.3m, 3% of the new allocations, up from to 2% in the last funding period.

The government is to announce a shortlist of up to 15 possible sites for eco-towns in the next month. The communities department confirmed the aim was still build to 10 towns.