The money will be spent on widening bridges, building roads and connecting utilities so up to 8,500 properties can be built.
Government has announced that it will spend £95 million in Woking and £47 million in Truro to deliver around 8,500 additional properties. The spending is under the Housing Infrastructure Fund.
Housing Minister Kit Malthouse MP said: “For decades, governments of all stripes and types have not built enough new homes but we are turning that around, brick by brick.
“We are driving to create homes, opportunities and thriving communities – and this £142 million investment will mean we can build more of the properties our country so badly needs.”
In Woking the money will pay to widen the Victoria Arch Bridge, to pay for road improvements, buying land and connecting utilities. The project is being delivered by Surrey county council.
In Truro, Cornwall, an extra 4,000 homes will be built as a result of a £47 million investment in new road links. The funding will be spent on a new northern access road, connecting sites from the A390 in the west to the Royal Cornwall Hospital and employment hub in the east.
The funding for both projects comes from the government’s £5.5 billion Housing Infrastructure Fund so that land can be made ready for development. Money is allocated to authorities after a competitive funding allocation process.