Government puts £39bn into social and affordable housing – Mortgage Strategy

Government puts £39bn into social and affordable housing – Mortgage Strategy



Families living in temporary accommodation or waiting for a council home will be helped by a £39 billion government housing programme.

The prime minister Andy Burnham and secretary of state Angela Rayner announced almost £10 billion in funding on 25 August to build more than 70,000 social and affordable homes across England.

The funding will go to 33 strategic partners, including councils, housing associations and other providers. Councils will also become strategic partners with Homes England, giving them a bigger role in building new homes.

About 60% of the homes funded through these partnerships are expected to be for social rent, the cheapest form of rented housing.

Almost 180,000 children are growing up without a permanent home. More than £2 billion of today’s funding is expected to go to mayoral areas outside London.

Burnham 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.”

The government said more than £16 billion remains to be allocated outside London over the next ten years. It plans to prioritise social rent homes and council housebuilding.

A further £46 million will be given to councils over three years to improve their skills and capacity to develop housebuilding plans.

In London, the Greater London Authority plans to offer at least £6 billion through the programme, with councils expected to deliver more than half of the homes funded in the capital.

The programme is part of the government’s plan to deliver 1.5 million homes during this Parliament.

Pepper Money intermediary relationship director Rob Barnard said: “Prioritising social rent will provide greater security for many households facing acute housing pressures, while measures to remove Section 106 bottlenecks should help turn funding commitments into homes more quickly.

“But solving the housing crisis requires both more homes and a better-functioning housing ladder. Alongside social rent, the programme must deliver sufficient shared ownership and other affordable homeownership options for people who aspire to build a stake in a home but can’t currently afford to buy outright.”


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