UK says GBP10 billion allocated to councils to boost affordable homes

A share of nearly £10 billion has been allocated to councils and housing associations in the first wave of UK government funding to boost "genuinely affordable homes", it has been announced.

The government said 60% of the new homes delivered will be for social rent, a target in line with plans when the £39 billion social and affordable homes programme was launched in 2025 under Keir Starmer's leadership.

The funding being announced on Tuesday is focused on enabling the delivery of more than 70,000 homes across England by 33 "strategic partners".

Councils outside London have been given the status as strategic partners for the first time and are expected to provide new housing at scale, helping more families to access a secure home.

With almost 180,000 children growing up without a permanent home, the government is putting councils at the heart of housebuilding, it said.

Andy Burnham has pledged the largest council housebuilding programme since the post-war era to tackle the severe housing shortages and homelessness.

He said: "No child should be raised in a hostel room and no family should wait 10 years for a front door of their own. I have said from my first day in this job that everything starts with a good home.

"Nearly £10 billion will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest.

"Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again."

More than £2 billion of the first funding allocations are expected to be spent in mayoral areas outside of London as part of the government's broader devolution agenda.

Mayoral strategic authorities are tasked with setting the strategic direction for programmes in their areas, helping to ensure investment reflects local priorities, the government said.

The prime minister is set to give mayors new powers to take control of local planning decisions and green-light large-scale developments.

More funding is expected to flow directly to mayoral authorities as the social and affordable homes programme develops over its 10-year duration.

Local government leaders have urged mayors to work closely with councils on delivery.

The allocations are the first stage of the 10-year programme, with more than £16 billion remaining to be distributed outside London.

In addition, the Greater London Authority intends to make at least £6 billion available through the programme, the government said, with councils in the capital expected to deliver more than half of the homes planned.

Housing Secretary Angela Rayner said: "Families can't be left raising children without a place to call home and none of us should spend years waiting for somewhere safe and affordable to live.

"I know how important fixing this is – because I've been there. A safe and secure home was the foundation for a better life – I couldn't have got to where I have today without it.

"That's why the prime minister and I are doing everything we can to get councils building once again – it's fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home."

Mayor of London Sadiq Khan said the number of families and children without a permanent home stuck on housing waiting lists is "unacceptable".

He added: "I want to work with this new Government to deliver a step change in how many council homes we can deliver across the capital."

A breakdown of planned activity by strategic partners shows 4,400 homes are set to be delivered in Greater Manchester with a spend of £529 million while 3,200 new homes will be delivered in the West Midlands at a cost of £409 million.

The North East has been allocated a £445 million estimated spend to support delivery of 3,400 homes, with West Yorkshire receiving £441 million for 4,000 homes.

Liverpool City Region is set to deliver 3,100 homes supported by £380 million while South Yorkshire has been allocated £249 million to provide 2,200 new homes.

Kate Henderson, chief executive of the National Housing Federation, said: "This is a major vote of confidence in not-for-profit housing associations and in the vital and distinct role they play in this country, as organisations that work for the long-term benefit of their communities".

Liam Robinson, chairman of the Local Government Association's inclusive growth committee, said councils stand ready to work with government to deliver the revival in social housebuilding.

He added: "Given the key role for councils in delivering these homes, it is crucial they remain at the heart of delivery.

"Mayors should work closely with local authorities in their areas to achieve the most from this money, with councils also having sustained access to preferential borrowing rates to support viability."

The government is just more than a quarter of the way to its target to build 1.5 million homes in England in five years.

Sarah Elliott, chief executive of Shelter, said: "Today's announcement puts councils back on the pitch in the fight to end homelessness.

"By giving local authorities some of the funding and support they need to start delivering social homes at scale again and ramping up the percentage of funds allocated to social homes, the government has laid the foundations for its council housing revolution.

"For too long local authorities have been stuck on the sidelines, unable to deliver the social rent homes their communities urgently need.

"We've seen record numbers of families pushed into homelessness and stuck in temporary accommodation as a result, with councils losing more social homes to Right to Buy than we've built."

The Tories said funding had been "backloaded" to fall outside the spending review and this Parliament, "meaning Andy Burnham will never have to pay for it".

Shadow housing secretary James Cleverly said: "This is a sleight of hand under Labour, and yet another unfunded spending commitment.

"The small print shows homes won't have to be delivered until 2039."

Cleverly said the commitment would be "another cheque written by a Labour PM and left for future generations to cover," adding: "Fewer homes will be delivered than previous programmes in this Parliament as social rent is more expensive. Labour have scaled back their affordable housing programme and expect us to thank them for it."

Liberal Democrat housing spokesperson Gideon Amos said allowing developers to drop affordable homes from smaller developments would have "been devastating for rural communities" and "it is good that they have seen sense and reversed this proposal."

He added: "Likewise, the move to allow councils to bid for funds for social housing is a good first step to helping secure adequate housing stock. However, until they address the care funding crisis in local government, very few authorities will be able to benefit from these changes."

By Jonathan Bunn, Press Association Political Reporter

Press Association: News

source: PA

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