Housing minister Gavin Barwell urged councils to apply for the money as “we want to ensure everyone has an affordable place to live and that means we’ve got to build more homes”.
The scheme assists the development of new villages of between 1,500 and 10,000 homes planned around green spaces.
It already supports developments planned at Bicester, Didcot, Basingstoke, a site near to Braintree, Essex, and the former RAF Deensthorpe airfield near Corby, Northamptonshire.