English Partnerships and the Housing Corporation will merge to form a new agency set with the task of delivering affordable new homes in sustainable communities, the government has announced.

Communities England will also encompass some of the roles currently undertaken by the Department for Communities and Local Government (DCLG), including housing standards regulation, housing market renewal, urban regeneration and housing growth.

The decision to form the new agency is a response to the Housing and Regeneration Review launched in April last year, which concluded that English Partnerships and the Housing Corporation would work more efficiency if their functions were combined.

“With the expectation of over £4 billion of public spending at its disposal, Communities England will pioneer innovative and more efficient ways of working with our key partners in the public, private and voluntary sector to get better outcomes from public investment in places,” said communities secretary Ruth Kelly.

“Central to meeting its challenge the agency will not only ensure greater value for money but also guarantee the very highest standards of quality, design, energy efficiency and sustainability.”

This would allow the DCLG to focus on “strategic policy making”, she added.

Commenting on the decision, Housing Corporation chair Peter Dixon said: “The new agency will bring the strengths of the Housing Corporation, English Partnerships and the DCLG together to form a single agency dedicated to creating places that people choose to live and stay in.”

Mark Thomas, head of policy at homelessness charity Shelter, expressed his hope that Communities England would persevere in the work of the Housing Corporation by focusing on “the delivery of social rented housing”.

“We want to see an additional 20,000 social rented homes per year on top of the existing level of commitment for 2008,” from the Comprehensive Spending Review, he said.

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