Housing minister Mark Prisk has allocated £1 billion to improve council housing stock over the next two years.
The money is intended to bring 86,000 sub-standard council homes up to a decent standard of living.
Mr Prisk also said the cash would boost the economy, construction jobs and help local tradespeople.
The figure represents an increase of about 50 per cent on the previous two-year period, when £612 million was spent.
Next year will see a spend of £194.5m, rising to £248.22m in 2014/15.
A total of £540m will go to London councils through the Greater London Authority, while £443m will be spent in other parts of the country through the Homes and Communities Agency.
Big winners outside London include Northampton, which will receive £30m in the final year of the period, compared to nothing in 2010/11.
Cheshire will also receive £8.5m in the next two years, compared to nothing in the previous two.
Harlow and Stroud will also be allocated around £6m each in the next two years, while neither received anything in the previous two years.
The £1bn funding will be spent by 41 councils in fitting new roofs and windows, updating kitchens and upgrading heating systems, among other improvements.
According to research by Nottingham Trent University, each pound spent in Nottingham’s Decent Homes programme generated £1.46 for the local economy.
Mr Prisk said: “By improving this country’s council homes we will transform many families’ lives for the better, bringing their living standards up to scratch, ensuring that their home is the safe haven it is meant to be.”
He added that he wanted to look at bringing the money forward so councils can invest in local homes, with officials set to contact councils on the matter.
“The benefits of the £1bn I’ve confirmed today reach far beyond tenants themselves and into the local economy.
“With every pound spent on improvements boosting local business, creating new jobs and supporting local spending, I want to see councils realising the benefits of this cash as soon as possible.”