More than £15m is to be funnelled into the town to 'accelerate' the building of new homes and improve the existing stock.
It comes as the town will need 'thousands' of homes to be built with the influx of new jobs and apprenticeships at BAE's Barrow operations.
Now Westmorland and Furness Council has approved £16.66 million from Team Barrow's £200m Barrow Transformation Fund to go towards that process.
£11.38 million will go towards delivering the houses at Marina Village off Salthouse Road where 1,350 new homes, a nature conservation area and new public spaces are set to be built.
£2.56 million is 'in direct response to the exceptional opportunities' related to the expansion of BAE's operations while a further £2.71 million will bring in additional housing enforcement officers to tackle existing poor quality stock and bring long-term empty properties back into use.
Plans for 800 homes at Barrow's Marina Village move forward (Image: Westmorland and Furness Council)
The Liberal Democrat cabinet met in Ulverston on September 8 to approve the scheme.
Councillor Judith Derbyshire, cabinet member for housing and community safety, stated the case for the proposals.
She said: 'Housing is one of the most critical challenges facing Barrow as we respond to the unprecedented growth associated with the Defence Nuclear Enterprise and the continued expansion of BAE Systems.
'If we are to attract and retain the workforce required to support that growth we must ensure that the right housing is available at the right pace and in the right locations.'
Cllr Derbyshire said the money would 'establish an accelerated housing delivery team' to provide the expertise in areas relevant to the planning process such as highways, ecological and more, to 'speed up' the process.
She said the improved housing standards was the part she was 'really pleased about', adding: 'A few years ago when I started (this role) I met with Barrow councillors and I was very grateful that they gave me a lot of information on how housing worked, or didn't work, in Barrow.
An artist's impression of how the Marina Village site could be developed. (Image: Westmorland and Furness Council)
'One of the things I remember them saying was Barrow went up and down with the fortunes of the BAE shipyard. It was how do we, in the long term, help those residents of Barrow who are needing more help and ensure they get all the benefits of the improvements going on at BAE.'
Cllr Derbyshire said housing in Barrow was 'some of the worst in the country' on the Housing Health and Safety Rating System which rates homes on a variety of safety criteria including damp and mould, asbestos, hygiene, crowding, lighting, noise and more.
She said homes in Barrow rated at the highest hazard category were at double the national standard.
Deputy leader Councillor Andrew Jarvis seconded the proposals, saying: 'Over the next decade we will need thousands of new homes in Barrow. That's a challenging number but the need is pressing, those houses are needed as soon as possible.'
Councillor Peter Thornton, cabinet member for highways and ICT, said the word 'tenement' was not included, adding old tenement buildings were a problem in Barrow and particularly Barrow Island.
But he said the council did not have the finances to address the issue fully, saying the £2.71 million would not 'touch the edges'.
The council cabinet meeting in Ulverston on September 8 (Image: Zach Harrison)
He added: 'We can't carry on with the most advanced manufacturing in the world, right next to some of the worst housing conditions in the country.'
Councillor Beverly Morgan, deputy leader of the Westmorland and Furness Labour group, had raised concerns during the councillors' questions part of the meeting that works needed to be done quickly.
She asked: 'Can you provide reassurance that, should this funding be approved today, the recommendations to support the delivery of Marina Village, housing expansion for BAE and housing standards will be accelerated at pace with no bureaucracy, and the benefits to Barrow be realised sooner rather than later.'
Cllr Morgan also asked for reassurance that any new officers appointed with the funding would be 'solely focused' on the recommendations, be based in Barrow and 'not swallowed up into other Westmorland and Furness housing activities'.
Cllr Derbyshire said she would respond to Cllr Morgan with confirmation on the staff.
The cabinet voted unanimously to approve the proposals.
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