Legislation intended to improve the supply of affordable social housing has been commended by Labour peers, it has been revealed.

Under the housing and regeneration bill is it proposed that English Partnerships and the Housing Corporation should merge to form the Homes and Communities Agency (HCA).

In addition, moves by the government will see a social housing regulator - the Office for Tenants and Social Landlords - be created.

During debate for the second reading of the bill, Baroness Dean said: "The HCA will have enormous influence and powers."

She also pointed out that despite its national remit, it is important that the organisations as a "local presence".

Meanwhile, Baroness Ford, former chair of English Partnerships, stated that the new laws will help to create "fundamental building blocks to accelerate the supply of new, affordable, social housing".

Earlier this month, Peter Dixon, chairman of the Housing Corporation, claimed that 2007 saw the institution either meet or exceed a number of its targets as it had a record year in terms of both investment and output.

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