WORK has started on 32 new homes in Lostwithiel.

The homes in Castle Hill Road are being built by local family-owned firm Wycliffe Estates which undertook a housing needs survey with Lostwithiel Town Council.

This identified more than 50 people who want to move into the 16 affordable homes which are included.

The project has been backed by the Homes and Communities Agency (HCA) with £1.3m coming from the Get Britain Building programme, a Government strategy to help builders put up more than 15,000 new homes across the country by December 2014, creating thousands of jobs.

The news has been welcomed by residents, many of whom have been living in rented accommodation all their lives.

Dean Wheeler, who runs The Barber Shop, will be one of the first people to move into a one of the affordable homes in May 2013.

'I have found it a struggle, as everyone has, to save enough money to buy a house. To see these homes about to be built here is fantastic,' he said.

HCA executive director for the South West, Colin Molton, said: 'It's great news that work can continue on this project delivering high-quality new homes for Cornwall.'

Christopher Taylour, director of Wycliffe Estates, said: 'We've not been surprised by the level of interest. As a local company we know how tough the housing market here has been for people who want to own their own home.'

The homes are due to be completed in 2014.