MORE than £9m has been made available to build affordable homes to tackle Dorset's "over inflated housing market."

It's the first wave of three years' funding and represents a victory for lobby groups - though it only dents the housing problem.

The National Housing Federation, which welcomes 200 housing associations in the south west, said: "We're pleased the government has backed our calls for more affordable housing in the region.

"House prices have more than trebled across the region over the past decade, while waiting lists for affordable homes have rocketed to 151,000."

Housing Associations, private landlords and councils can bid for the money.

The Government said the South West's provisional allocation of £826m for 2008-11 is the biggest funding increase of all the regions in the country.

A spokesman said: "It includes an extra £23m that was awarded following lobbying by the South West Regional Assembly, using evidence provided by local authorities."

Average house prices in Bournemouth are 12 times the average income.

The £9m will build around 190 homes in Dorset - though Bournemouth Council thinks it alone needs 400 homes over three years.

Bournemouth has 5,200 council homes and is looking at how to build more.

Poole's former council housing is run by an Arms Length Management Company and it will now be able to bid for money to build houses for the first time. Chief executive Joe Logan said: "It's a big change in government policy.

"We are interested in applying for money - there's a huge need for affordable housing in Poole. But our priority is maintaining our own homes."

Purbeck Housing Trust has 1,750 homes and 1,000 people on its waiting list - but it got money for just one home in the most recent wave of funding.

Robin James, managing director, said: "The demand is huge. We're planning more bids over the coming months."

The national programme will see £8.4bn spent over 2008-11 in an attempt to double the number of affordable homes.

The money is channelled through the Housing Corporation and is one of several ways of funding affordable housing.