A  £21 million grant to build new homes in one of Birmingham’s most deprived estates will “transform” the area, ministers have said.

Hazel Blears, the Secretary of State for Local Government, was speaking after a long-awaited grant for the Kings Norton Three Estates finally received the green light.

She told the House of Commons it was important that Birmingham City Council acted quickly to put the cash to good use.

The multi-million pound redevelopment involves the demolition of 640 council homes and 178 owner-occupied homes and the building of 1,000 new properties.

Kings Norton has been allocated £21.6 million over three years under the Government’s New Deals for Communities scheme, which is designed to cut crime, improve school standards and build decent housing in Britain’s most deprived areas.

Birmingham MP Richard Burden told Ms Blears: “I thank her for confirming £21.6 million for that project over the next three years. Will she confirm that the important thing now is that Birmingham City Council and the other partners should get on with putting the project into practice?”

The Local Government Secretary said: “I confirm that the priority is to get on and to make the difference. The big capital investment in Kings Norton will significantly transform his area.”

The estate’s development trust, which represents local residents, must be able to control how the money is spent, she said.

“We have discussed before in the House the importance of the development trust being able to lead the development and to shape it for the future in the way that local people want.”

Ms Blears also agreed to meet a delegation of Birmingham councillors to discuss funding in the Perry Barr constituency.

She was asked by MP Khalid Mahmood (Lab, Perry Barr): “Will she meet a delegation of councillors from Birmingham city council to discuss regeneration funding and, in particular, working neighbourhoods funding, which the local authority is not currently applying properly?

"She will be able to hear their concerns and discuss how we can move forward.”