A £200 million pilot project will be launched today allowing housebuilders to bid for grants from the Housing Corporation (HC) to increase the number of homes available at social housing rents. Under the scheme 3,000 to 4,000 homes are expected to be built by 2008-2009. If the pilot is successful £3.6 billion worth of grants could be opened up to the private sector for 2006-2008, resulting in 65,000 homes. The grants will also be available to local authorities. Until now grants have only been available to registered social landlords who will still be able to bid alongside the private and local authority sectors. HC chief executive Jon Rouse said: “Now we need to look at the expertise and skills available in the private and public sectors to supplement the good work done [by housing associations}.”