Plans to develop as many as 10,000 extra homes a year until 2016 have been revealed by the government.

Controversial plans to build 200,000 homes - most of them in the South East - were unveiled three years ago. But, in the wake of last year's Barker Review of housing needs, Housing and Planning Minister Yvette Cooper said development had to go beyond existing growth areas to meet demand and make homes more affordable.

Now, towns and cities across the south of the country have responded to the New Growth initiative, which proposes strategies for ‘sustainable’ local economic growth, balancing jobs and new homes and creating more attractive, sustainable places to live in areas not previously marked down for expansion.

Over 20 bids have been received, representing more than 50 local authorities, with a good spread of applicants from the South West, East and West Midlands as well as the South East and Eastern regions, the Department for Communities and Local Government announced this week.

Speaking at the Chartered Institute of Housing Conference in Harrogate, Ruth Kelly said:

"Many of our regional towns and cities want to grow and are experiencing increasing housing pressures. They want to become more attractive places for business to invest and young people to stay and find a home."

"Of course we will need to look carefully at the proposals coming forward but I am greatly encouraged by the good early response to this scheme".

The bids will be subject to careful consideration, followed by consultation, testing and examination in the regional planning process.

An announcement on taking forward the schemes will be made in October.

Towns and cities involved are: West Midlands - Birmingham/Solihull; East of England - Norwich, Haven Gateway (Colchester/Ipswich), Thetford/Breckland; South East - Partnership for Urban South Hampshire, Reading, Oxford (City), Didcot, Basingstoke, Maidstone, Redhill/Horley South West - Bristol (West of England Partnership - 4 unitary authorities), Swindon, Exeter, Plymouth, Truro/Carrick, Poole: East Midlands - "The 3 Cities Bid" (Leicester/Derby/Nottingham), Lincoln, Grantham and Newark.