HUNDREDS of jobs will be created after Hull received a £91 million windfall.

The money will be used to regenerate a run-down part of the city left in limbo after the axing of the Gateway scheme and build hundreds of homes for vulnerable people.

The Mail can reveal Keepmoat, the private firm involved in the Gateway project, has been awarded £8 million to continue the regeneration of the Newington and St Andrew's neighbourhoods.

The Department of Health has also awarded £83m for three "supported housing" developments for older and vulnerable people.

The £8m, which has been awarded from the Government's Regional Growth Fund (RGF), will create around 839 construction jobs – including 95 apprenticeships.

Keepmoat said it will allow them to unlock a further £150m of private funding streams.

The news comes just days after residents told the Mail they were being forced to live in "slums" following the axing of housing regeneration funding, with all the properties on one side of Clyde Street currently boarded up.

Norah Griffin, who lives in nearby Clydesdale Avenue, said: "I am absolutely ecstatic. I cannot put into words what this means to us.

"We can all now breathe a sigh of relief. It is like a millstone has been taken from around our necks."

City council leader Carl Minns, said: "This is great news for the city. I am really pleased the Government has seen sense and put money in to finish the regeneration of west Hull."

The regeneration work includes knocking down old housing and building new properties and will result in 1,475 new and refurbished eco-efficient homes.

David Carmichael, Keepmoat Homes Partnership Director in Yorkshire, said: "This is great news and we are delighted to have cleared the first hurdle. Over the next 8-12 weeks, we will need to go through a process of due diligence in order to secure the grant.

"So the next step is to sit down with our partners to ensure we successfully complete this in order to be able to continue the good work which is being done in the Newington St. Andrew's area of Hull, where new homes and jobs are being created, neighbourhoods transformed and communities revitalised."

Rick Welton, the council's portfolio holder for housing and regeneration, added: "It is vital that the work started under Gateway is completed. This announcement means hundreds of new homes for local people and jobs for people in the construction industry."

The second cash windfall comes in the form of £83million of Private Finance Initiative (PFI) credits from the Department of Health (DoH).

This will create three supported housing developments – totalling more than 200 supported homes for older people and adults with special needs.

The main focus will be to support people with dementia.

The three developments, which are being built to help residents live independently for longer and reduce reliance on social services such as day care centres and hospitals, will be created in Hawthorn Avenue, the former Homethorpe flats in Orchard Park and the former Holden Centre in Leads Road.

The locations have been handpicked to ensure extra care is available in different parts of the city and to support other regeneration projects, particularly in Orchard Park and Newington and St Andrews.

The developments will include communal health facilities, including treatment rooms.

These will be used for a range of services, ranging from changing sterile dressings and administering flu jabs to chiropody.

The move is also expected to create hundreds more construction jobs.

Angela Dunn, the city council's head of social care and housing, said: "The fact that our PFI bid has been successful is fantastic news for the city and people of Hull.

"We will now be able to press ahead with developing these extra care schemes to provide more support for older and vulnerable people to live independent lives."

The scheme is one of four across the country announced yesterday by the DoH.

Care Services Minister Paul Burstow said: "This is key to developing services that fit around peoples lives and deliver personalised care and support."

Deputy Prime Minister Nick Clegg said he was "bowled over" by the quality of the first wave of RGF bids.

He said: "This money will now help create and safeguard jobs in some of the communities worst hit by the economic downturn.

"I know that with the right support these businesses can work with their communities and together play their part in leading the country back into prosperity."

Business Secretary Vince Cable added: "Supporting job creation in the regions is vital if we are to drive growth in our local communities.

"The Regional Growth Fund is a competitive fund and we wanted to see proposals that created jobs in the private sector, in areas of deprivation and that is at risk of suffering from public sector cuts. I'm confident that the successful bids we have chosen will deliver on this."

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