HUNDREDS of new council homes are planned for Kirklees in an £80m deal.

Next Wednesday, Kirklees Council's Cabinet is expected to put in a bid under the Government's private finance initiative to build 550 homes and flats around the district.

Rent from the new properties would net the council £1m a year.

If successful, the PFI bid would see a private developer build the houses, which would be then be owned by the council.

There are currently 27,000 authority homes in Kirklees.

The initial bid to the Government is to cover building costs as well as long-term management and maintenance.

The planned small-scale developments would provide more housing for older people, small families and young people.

Older properties falling into disrepair are to be demolished to make way for the new build.

Clr Andrew Cooper, Cabinet member for housing, said much of the work would involve re-developing sites where substandard houses had been, or would be, demolished.

He said such development was badly needed to meet local housing demands.

The proposed houses and flats would have high environmental standards and be energy-efficient.

Clr Cooper said the Housing Revenue Account was separate from other council budgets, and any PFI would not result in increased council tax levels.