The investment, delivered under the Housing Infrastructure Fund, is part of the government’s drive to deliver 300,000 homes a year by the mid-2020s.
It will be used to free up land for housing by providing the cash to build roads, widen bridges and connect utilities in areas of high housing need.
Housing minister Kit Malthouse said the funding, which is allocated to local authorities through a competitive process, would help deliver homes in areas where they were urgently required.
“For decades, governments of all stripes and types have not built enough new homes but we are turning that around, brick by brick,” he said.
“We are driving to create homes, opportunities and thriving communities – and this £142m investment will mean we can build more of the properties our country so badly needs.
“We need to keep upping our game and build more, better, faster, if we are to meet our ambition to deliver 300,000 homes a year by the mid-2020s.”
Around £95m will pay for improvements in Woking, Surrey, to reduce congestion in the area and unlock land to build 4,500 homes in the town.
A further £47m will open up land for an extra 4,000 homes in Truro, Cornwall, by improving road links in the area.
David Bittleston, leader of Woking Borough Council, said the funding reflected the substantial investment already made in the borough.
“This is fantastic news, not only for Woking but also the wider region,” he said.
“By working in partnership with Surrey County Council and other key stakeholders, we can now deliver significant improvements to the local road and rail infrastructure, whilst supporting the continued growth of Woking.”
Andrew Mitchell, Cornwall Council cabinet portfolio holder for housing, said the council had already agreed to invest in a high quality housing scheme with a view to establishing a community instead of a series of housing estates.
“This government funding announcement means that the proposed council intervention to provide access to kick start house building is a step closer,” he said.
The £5.5bn Housing Infrastructure Fund is available to local authorities to unlock housing potential in their areas, with the aim of building up to 650,000 homes in areas of greatest housing need.
