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The Homes and Communities Agency has written to the heads of all councils in England to ask them to identify land on which it can build new homes in partnership with contractors.

The HCA said last week it wanted to initiate a pilot programme to build 500 homes on its own land in joint ventures with contractors, including Wates, Skanska and Bouygues. This week it said it would expand the programme if were successful.

The agency plans to issue an Official Journal notice within two weeks seeking interest from contractors.

Under the initiative, announced as part of last week鈥檚 好色先生TV Britain鈥檚 Future programme, the HCA said it would offer public land with grants, planning permission and basic demolition on a 鈥渄eferred payment鈥� basis to contractors, and recover the value on sales.

In the letter to authorities, Sir Bob Kerslake, the HCA鈥檚 chief executive, said: 鈥淲e are seeking to identify sites in wider public ownership that could play a part in this challenge, including existing stalled schemes and projects with multiple phases.鈥�

Contractors such as Lovells, Galliford Try and Mace have said they are interested in participating in the scheme. Wates told 好色先生TV it could build up to 3,000 homes a year if the partnership were a success.

The HCA will divide its land into plots large enough for 100 homes to ensure competition. Land must already have planning permission and cannot already be claimed by a developer.

Trevor Beattie, the HCA鈥檚 corporate director responsible for the programme, said: 鈥淲e鈥檒l be responding to bids contractors put forward based on the relative share of risk and reward and quality of their offer.鈥�

Beattie added that contractors pledging offsite production methods would be more likely to win contracts.

Steve Trusler, strategy director at Wates Living Space, said: 鈥淲e鈥檙e really encouraged to hear what the HCA is thinking about these things.鈥�