Affordable Homes Programme to receive £500 million in new funding ahead of Budget

Chancellor of the Exchequer, Rachel Reeves, has confirmed a £500 million funding boost for the government’s Affordable Homes Programme ahead of her first Budget on Wednesday 30th October.

The funding is set to deliver up to 5,000 new affordable social homes, bringing total investment in housing supply to over £5 billion. The Affordable Homes Programme will deliver a mix of homes for sub-market rent and home-ownership, with a particular focus on delivering homes for Social Rent.

Chancellor of the Exchequer, Rachel Reeves said:

“We need to fix the housing crisis in this country. It’s created a generation locked out of the property market, torn apart communities and put the brakes on economic growth.

“We are rebuilding Britain by ramping up housebuilding and delivering the 1.5 million new homes we so badly need.“

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

“We have inherited a housing system which is broken, with not enough homes being built and even fewer that families can afford.

“This is a further significant step in our plan to get Britain building again, backing the sector, so they can help us deliver a social and affordable housing boom, supporting millions of people up and down the country into a safe, affordable and decent home they can be proud of.“

Alongside the funding announcement, the Government also revealed it will consult on a new 5-year social housing rent settlement, which caps the rents social housing providers can charge their tenants and that will be linked to inflation. Measures will also include changes to the Right to Buy scheme that will reduce discounts on purchasing homes, and allow greater protections for councils to keep 100% of the receipts generated by a sale. The move aims to increase certainty for the social housing sector and local authorities to invest in new homes, and slow the depletion of social housing supply.