The public sector will build at least 200 new homes over the next four years, Housing Minister Terry Lister revealed yesterday.

Government announced 56 new units will be built by the Bermuda Housing Corporation while projects by the Bermuda Land Development Corporation and the West End Development Corporation, both public bodies, will be announced over the coming weeks.

Mr. Lister said in recent years between 180 and 250 houses were built annually in Bermuda, with private sector involvement.

"So when we say we are going to do 15 units a year over four years that's a pretty significant number out of 200, coming out of Bermuda Housing Corporation."

He said this was one of about "six different things we are going to put forward".

"Together, by the time we get to the end of this process and we have unveiled everything, the numbers are going to be considerably higher."

Mr. Lister said the total of Government and quango housing over the next four years would exceed 200. "That's the minimum number over that four-year period. It could be considerably higher."

The first of the new BHC properties are set to be available by the coming summer while others will come on-line in 2005.

Bermuda Housing Corporation Vance Campbell said the plan was primarily about boosting rental units without taking up undeveloped land. He said some Government property in Mary Victoria, Prospect with flat roofs would have another storey added.

Mr. Lister admitted the BHC sites announced yesterday were small scale and "bitty" and thus more costly per unit but it in some cases building would remove littering problems at derelict land. He admitted Fenton's Drive was densely packed but said the four one-bedroom units would be on a plot of land which had fallen into disrepair and had to be cleared of garbage.

The housing budget will be boosted next year as Government also looks to increase stock by buying from the private sector, said Mr. Lister.

"The BHC recognises construction takes time and therefore we will also be looking to increase our available housing stock through purchases of existing units from the private sector market."

He said houses bought from the private sector would have to be bought and sold at market prices but BHC mortgages come at a better rate. Government was keen to get some of the Island's 2,000 vacant properties into use, he added.

"Every time we can convince a home owner to make their apartment available to Bermuda we have solved the housing crisis for a particular family without any bricks and mortar impact."

But many of these properties were derelict and needed tearing down and replacing but some owners were trying to get cash for both the land and the useless property, said Mr. Lister.

Mr. Lister said high rise development would only be considered two years down the line if housing was still a large problem.

"Legally two storeys dwellings are the rule in Bermuda so we can't go beyond that. Once we have gone through this year and the next year and we find we haven't broken the back of this problem we may have to sit down with Planning and the Bermuda Development Plan and see whether or not we really should be going up higher. We think we can get things done under the legal conditions that exist."

Mr. Lister admitted the emergency housing list of 107 people was far from the whole picture with overcrowding a large problem.

He raised the issue of new work permit holders taking up new housing. In his previous portfolio as Immigration Minister he claimed that number was relatively static. But yesterday he said relatively small immigration rises in that number had a big impact on housing.