BOURNEMOUTH is to build its first new council houses for nine years.

Following the government’s decision to allow local authorities to build new homes, Bournemouth drew up plans to build two houses and 10 flats on the Mallard Road site in Castle Lane.

Its bid for funding was successful, meaning the new homes will be built by December 2010.

Bournemouth is the only remaining local authority in Dorset to have maintained ownership of its housing stock, a move supported by tenants in a 2004 vote.

The last council houses to be built in Bournemouth were in Moorside Close, East Howe in 2000, when four houses were built.

The council will receive £540,000 from the Homes and Communities Agency and will borrow the remaining £583,468. A condition of the bid is that work must be started on site quickly and completed by March 2011.

Housing association Signpost had previously planned to develop the site before the council decided to build new council homes.

The council will use the developer chosen by Signpost to build the new properties. Once they are completed, they will be transferred into the council’s housing stock and managed by housing landlord services.

Gary Josey, service director for housing landlord, said: “We are extremely pleased to confirm that we have been successful in our bid to the HCA for funding to build new council homes in Bournemouth.

“We have been granted £540,000 to build two new houses and 10 flats in Mallard Road in time for December 2010 providing much needed additional council housing in the borough.”