Today, Chancellor of the Exchequer Rachel Reeves has announced £39billion worth of funding to support the delivery of social and affordable homes over the next ten years.
The announcement was made in the House of Commons as part of the UK Government’s latest spending review.
The spending review contains a raft of measures designed to help the Labour Government, elected last July, meet its target of building 1.5 million new homes before the next General Election which is scheduled to take place in 2029.
The measures include:
- An increase in the amount of funding released by the Affordable Homes Programme (AHP) from £2.5billion each to nearly £4billion per year
- A 10-year social rent settlement that will set a rent policy for social housing from 2026
- An announcement of consultation on the re-introduction of rent convergence.
The increased funding for social housing has been paid for by a relaxation in Chancellor Rachel Reeves ‘fiscal rules’ with more allowance now made for borrowing for capital investment.
Responding to the Chancellor’s news for builders of affordable homes our Chief Executive Ruth Cooke said: “Today’s announcement could be a gamechanger for our sector, and it’s great to see the recognition of the need to fund associations to build homes for social rent.
“Prior to last year’s General Election and following the result, we have been working closely with our partner housing providers in the Homes for South West (H4SW) and the West Midlands Housing Association Partnership (WMHAP) to lobby for more government support to provide social and affordable homes.
“The ten-year rent settlement and increased funding available through the AHP are welcome news for social landlords and will aid us in playing our part in tackling the housing crisis by providing new homes while we continue to invest in the quality of our existing homes.”
Last year, we provided 355 new homes with 297 earmarked for social and affordable rent.