The fund comes as part of a joint venture between Kier Living, the Cheyne Social Property Impact Fund and the Housing Growth Partnership. Their aim is to construct the homes over the course of a 5 year period.

After the houses are built, councils will be able to decide whether to deliver the properties for sale or for rent at a discounted rate. Up to half of each site will have opportunity for development.

Kier Living executive director John Anderson said: "Through this unique public-private sector partnership we are collectively offering an end-to-end solution to building much-needed new homes."

The partnership will provide the local authority with an extensive development solution, including procurement, funding, site assembly, construction, sales and maintenance.

Shamez Alibhai, head of Cheyne’s Social Property Impact Fund, added: "The long-term investment horizon of our socially conscious institutional investors means we are able to provide patient capital to work with Kier Living and the HGP in delivering a new socially inclusive, multi-tenure building model that helps alleviate the current housing crisis."