The new government department Communities England will deliver more affordable housing and regenerate the country’s most deprived areas, communities secretary Ruth Kelly has announced.

Combining the work of the Housing Corporation, English Partnerships and elements of Communities and Local Government, the new body will oversee the delivery of £1 billion in new infrastructure, community facilities and housing by 2014.

As well as boosting the supply of low-cost accommodation in England, the department will also gentrify dilapidated areas, facilitate the use of brownfield sites and promote the development of diverse communities with a mix of tenure, income and housing types.

Simultaneously, Communities England will be responsible for fostering more stringent environmental standards with which to develop more sustainable communities.

"The creation of Communities England presents us with a unique opportunity to build on ten years of progress and ensure that every individual and community has the opportunity to share in the country’s prosperity, growth and sustainability," said Ms Kelly.

The communities secretary also published details today of a proposed new housing regulator, which is designed to deliver comprehensive rights to social tenants.

Professor Martin Cave, who is responsible for the social housing review on which the recommendations are based, described the appraisal as "timely".

"The current system of regulation of social housing was established over 30 years ago," he observed.