A large cash injection has been announced for delivering social and affordable housing
Another announcement under the Plan for Change will see a £2bn social housing investment to increase the number of affordable homes.
The investment can cover up to 18,000 new homes.
The investment follows on from skills announcements
The £2bn social housing investment follows Monday’s announcement of a skills package worth £600m and able to fund 60,000 construction jobs. In conjunction, the intention is to ramp up rates of housebuilding. The Spending Review will finish on 11 June, and from there further long-term investment will be announced.
The money will act as a down payment for longer term investment in social and affordable housing planned later this year. Additional funding will come in 2026 and onwards.
In March 2027, thousands of new affordable homes will begin and finish construction by the end of the current Parliament.
Providers are now able to put themselves forward to the government with bids for projects, and projects that have planning permission already and are waiting for work to begin will also be boosted to begin construction with this investment.
Most of the funding will be allocated in 2026 and 2027, with some covering completion in the following years. Providers will have access to the funding through the same terms as the Affordable Homes Programme for 2021-2026.
“We are fixing the housing crisis”
Deputy prime minister and housing secretary, Angela Rayner, said: “Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.
“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5m homes, and the biggest increase in social and affordable housing in a generation.”
Chancellor of the exchequer, Rachel Reeves, said: “We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.”
Kate Henderson, chief executive at the National Housing Federation, said: “This funding top-up is hugely welcome and demonstrates the government’s commitment to delivering genuinely affordable, social housing for families in need across the country. The additional £2bn will prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced.
“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness. Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.”
Full details will be laid out at the conclusion of the Spending Review.
