£12 billion boost announced for affordable homes

Housing Secretary Robert Jenrick has launched new investment in housing to help the country build back better, including homes for social rent to help the most vulnerable.

According to the government, the investment in affordable housing will make it easier to get a foot on the property ladder.

In total, the new programme represents the highest single funding commitment to affordable housing in a decade. The £12.2 billion overall investment in affordable housing was confirmed at Budget, which also includes £700 million on new homes through the 2016 to 2022 programme.

Jenrick said that a new £11.5 billion Affordable Homes Programme will be delivered over five years from 2021 to 2026, providing up to 180,000 new homes across the country. It is hoped that the programme will unlock a further £38 billion in public and private investment in affordable housing, with around half of the new homes available for affordable home ownership.

In order to support people from all backgrounds, the rest will be made available for discounted rent, including 10 per cent for supported housing – to support those with physical or mental health challenges.

As well as delivering homes for affordable ownership, the new programme will deliver homes for Affordable and Social Rent, which is typically 50-60 per cent of market prices.

The Housing Secretary said: “Today’s announcement represents the highest single funding commitment to affordable housing in a decade and is part of our comprehensive plans to build back better. This government is helping hard-working families and prospective first-time buyers get their feet on the housing ladder in an affordable way.

“Thanks to the range of flexible ownership options being made available, more families across the country will be able to realise their dreams of owning their own home, with half of these homes being made available for ownership.”