Councils will be given £68m to build thousands of homes on disused brownfield sites, the government has announced.
The money will be spread across 54 local authorities in England and is expected to deliver 5,200 homes on sites such as former industrial land and car parks that can be difficult to build on.
Labour’s manifesto pledged to build 1.5 million homes over the five years of this parliament.
Sir Keir Starmer said the new funding shows how the government is “rolling up its sleeves and delivering the change the British people deserve”.
The funding is not technically new as it is part of the second brownfield land release fund (BLRF2) Boris Johnson started when he was prime minister.
It has already awarded £95m to help councils build an expected 6,800 homes.
The third round of the fund had made up to £80m available, but the Labour government has chosen to award just £68m.
“I said this government is on the side of the builders, not the blockers. And I meant it,” Sir Keir said.
“This funding for councils will see disused sites and industrial wastelands transformed into thousands of new homes in places that people want to live and work.
“Our brownfield-first approach will not only ramp up housebuilding but also create more jobs, deliver much-needed infrastructure and boost economic growth across the country.”
Projects awarded funding as part of this round include £2.9m for 220 homes on a vacant site in Manchester, £1.7m for more than 100 homes on brownfield land in Weston-Super-Mare, and £2.2m for 80 homes on a former industrial site in Eastbourne.
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Homes England, the government body that funds new affordable housing, also announced £30m to help the Riverside Sunderland project to redevelop former industrial land south of the Stadium of Light.
The project expects to build 1,000 homes and provide space for between 8,000 and 10,000 jobs.
Housing minister Matthew Pennycook said: “The government is committed to a brownfield-first approach to housebuilding and we have already taken steps to prioritise and fast-track building on previously used urban land through our proposals for a ‘brownfield passport’.
“The funding announced today will support the delivery of thousands of new homes and boost economic growth by unlocking development on scores of abandoned, disused and neglected urban sites across the country.”
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The announcement came as housebuilder Bellway’s profits fell by more than half for the past year after lower orders for new homes due to mortgage rates hitting a 15-year record high of 5.25%.
Revenues fell by 30.1% to £2.38bn for the year to 31 July, compared with the previous year. The firm’s pre-tax profits plunged by 62% to £183.7 for the year.
House construction dropped by 30.1% to 7,654 homes in the year.
The housebuilder said customer demand has been “robust” over the start of the new financial year, as further reductions in mortgage rates help to drive a recovery in orders.
