The Moat Housing Group will provide housing for key workers in Brighton and Hove in conjunction with the city council.

Last week The Argus revealed millions of pounds was being made available to help public sector workers like police officers and nurses stay in areas with high housing prices such as Sussex.

Moat spearheaded the Brighton and Hove bid.

Chief executive John Barker said: "Many young couples and single people simply cannot afford to buy a first home in the city.

"The Government's starter homes initiative is a new approach to housing essential key workers in areas where homes are expensive."

Tehmtan Framroze, cabinet housing councillor, said: "The scheme will provide help to about 95 households in the city but we realise there is still a long way to go in solving housing problems."

Key workers buy a percentage of the equity in a property of their choice and either pay affordable rent on the rest or are provided with a loan which is paid off when the property is resold.

Moat is one of the largest housing associations in the UK with more than 11,000 homes.