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New homes to be built under Affordable Housing Scheme
The Department for Levelling Up, Housing and Communities has backed the expansion of an initiative to provide low-cost loans to housing providers.
20,000 new homes will be built across the country under the Affordable Homes Scheme.
Due to an £3 billion increase in a Government-backed loan fund, the scheme can now be used to upgrade existing properties.
Providers will be able to apply for loans to carry out vital building safety works, such as the removal of dangerous cladding.
Housing minister Lee Rowley said: “We know getting cost-effective loans can be a stumbling block for many developers building more affordable homes or upgrading their existing stock, so it is of the quality tenants deserve.”
Launched in 2020, the Affordable Homes Scheme has allowed 12 providers to deliver over 6,000 new homes.
As part of the scheme, providers will be able to apply for loans to help make homes fit for the future. These energy upgrades, such as solar panels, could potentially save tenants hundreds of pounds on their energy.
Watford Community Housing is one of the beneficiaries of the initiative, and they have built 200 new homes since accessing the scheme in 2021.
Watford community housing chief executive Paul Richmond said: “The benefit of using the Affordable Homes Guarantee Scheme in terms of pricing over our 30-year plan is worth nearly 100 additional homes being delivered into our local community.”
The scheme is part of a bid from the Government to build 1 million homes this Parliament and deliver 300,000 homes a year.
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