A housing association has secured £16m to build affordable homes across Yorkshire.

Yorkshire Housing – which earlier this year unveiled a £1.75m residential development at Bath Street in Huddersfield – has received £16m of Homes and Communities Agency (HCA) grant funding.

The new homes will form part of the association’s ambitious plans to build 1,500 new homes in the region between 2015 and 2018.

The programme will not only tackle the lack of affordable homes in the area, but also boost employment in the region by creating an estimated 1,000 jobs.

Ged Walsh, director of new business and development at Yorkshire Housing, said: “We are very pleased to have received an allocation of over £16m from the HCA.

“When this is combined with our own resources, it will allow us to build over £70m of new homes in Yorkshire.

“This is a big boost to the region’s economy and it will provide over 1000 jobs in the area.

“By working with the local HCA office, we are very pleased to have agreed a new programme that works for us and helps to provide new homes at a reasonable cost to the public purse.

“The confidence the HCA have in us to deliver this programme is a reflection of the close working relationship we have built up over the years.”

The National Housing Federation Report “Home Truths” identified a yearly shortfall of 16,300 homes in Yorkshire and the Humber.

It also highlighted that while workers in the region have seen the average wage rise by just 25% between 2002 and 2012, house prices have rocketed more than three times as fast – by a staggering 81%.

Yorkshire Housing chief executive Mervyn Jones said: “At the moment, there are too many people being forced to live in unsuitable accommodation, including young adults living with parents and families living in cramped conditions.

“This is happening because people can’t afford to rent or buy anywhere which meets their needs. To tackle this crisis we need to build more affordable homes.

“We are keen to do our bit, which is why we have are committed to providing 1,500 new affordable homes over the next three years.”

Yorkshire Housing manages more than 16,000 affordable homes across North, South and West Yorkshire as well and providing a wide range of care and support services.

Roseda House at Bath Street provides 16 two-bedroom apartments targeted at working people on low or average incomes and available to let at 20% below standard market rent.