Construction work on a £6bn scheme to provide housing for the elderly in Radcliffe, Manchester is set to begin in February.

Six Town Housing which manages the council's housing stock, submitted a bid for £2.9m to the Homes and Communities Agency's National Affordable Housing Programme. The funding which was approved by the HCA in October, will be used to help pay for the construction of the scheme. Six Town Housing also received a £3m loan from the council which will be paid back using the rental income from the new properties.

Now the project is fully funded, the existing building will be demolished and construction work will begin in February to replace the building with an extra care housing scheme which will also have 40 self-contained units. Members of Bury council, Six Town Housing and the HCA recently inspected the site of the former Red Bank residential home.

Is is thought construction of the home will be complete by the end of 2012. The extra care scheme will provide residents with communal facilities including a bistro and hair salon in an effort to create a real sense of community. Residents at the scheme will be able to choose between specific care packages to suit their needs ranging from low to high level care. Those in need of more high level care will receive support from those in supported housing jobs, which will allow residents to live independently.

Councillor Michael Hankey spokesman for health and well-being told the Manchester Evening News: "It's been more than 25 years since any new social housing has been built in the borough and I am delighted that it is taking place in Radcliffe."