Rachel Reeves, the UK's chancellor of the exchequer, has confirmed an additional £500m ($648m) in funding for the existing Affordable Homes Programme, aimed at delivering up to 5,000 new affordable social homes in the country.
This boost raises the government's total investment in housing supply to more than £5bn and supports the construction of 33,000 new homes, with £128m allocated for various housing projects across the country.
The allocated £128m will enhance housing supply at complex brownfield sites.
Key projects include £56m at Liverpool Central Docks, expected to produce 2,000 homes and mixed-use facilities, £25m to create 3,000 affordable energy-efficient homes through a joint venture with Muse Places and Pension Insurance, and £47m for pollution mitigation and unlocking up to 28,000 new builds currently blocked by river pollution.
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 house building and delivering the 1.5 million new homes we so badly need."
The latest £500m in funding precedes the government’s Housing Strategy, expected in early 2025.
Additionally, a new five-year social housing rent settlement will expand social housing stock by ensuring funding stability and enabling investment in tens of thousands of new homes. The proposed settlement would potentially increase with consumer price index inflation figures plus an additional 1%.
Existing housing will be safeguarded by reducing Right to Buy discounts, helping to keep more council homes available in the sector.
The programme aims to provide a diverse range of housing options, including both submarket rent and home-ownership opportunities, with a strong emphasis on increasing the availability of homes for social rent.
Councils will benefit from the ability to retain 100% of the receipts from Right to Buy sales, enabling them to scale up the delivery of social housing.
