Users of brick tools are to build 650 homes as well as shops and cafes in Rathbone Market, London, one organisation reported.

The Homes and Communities Agency (HCA) said it had partly funded the £180 million project, which is scheduled to begin this autumn.

Rathbone Market is just one of the sites earmarked by Newham Council for regeneration, the HCA noted.

The 680,000 sq ft project will be the first scheme to be completed in the Canning Town and Custom House area - which the local authority would like to see redeveloped.

Having received £13 million from the HCA, Newham Council will now work with the English Cities Fund on the project.

Councillor Conor McAuley, executive member for regeneration and strategic planning said: "This is excellent news ... the plans will radically transform the area into a thriving place of choice for existing and new residents and businesses".

Elsewhere, the HCA recently supported the building of eight new bungalows in Gateshead.

Posted by Andrew Miles