WORK is underway on a new £290,000 rented housing scheme in Malvern.

Festival Housing Group, based in Malvern Link, is building the development in Marsh Close.

The new homes are being built on an area previously used for car parking which suffered from vandalism and nuisance behaviour. When complete in September, it will provide local people with three two-bedroom bungalows and two flats.

Festival group member Elgar Housing Association will manage the properties.

Funding was provided by the government-backed Housing Corporation.