£8.6 billion for affordable housing

£8.6 billion for affordable housing

15:57 PM, 2nd September 2021, About 2 years ago 7

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Thousands of people will be helped onto the housing ladder as funding worth £8.6 billion is allocated across the country. Part of the largest single investment in affordable housing in a decade, the Affordable Homes Programme funding will deliver around 119,000 homes, including 57,000 for ownership, 29,600 for social rent and 6,250 affordable rural homes.

Today’s cash injection could support up to 370,000 jobs across the country for homebuilders, SME developers, and wider businesses supporting the house building industry such as electricians and plumbers. This is expected to generate up to £26 billion of other private and public investment.

Around half of the new homes from this £8.6 billion funding will be available for affordable home ownership, helping even more young people and families to get a foot on the housing ladder. This follows other government schemes to help first-time buyers into homeownership including First Homes, offering new homes at a 30% discount on the open market value, and the 95% mortgage guarantee scheme, which helps first-time buyers secure a mortgage with just a 5% deposit.

The funding will also deliver nearly 30,000 homes for Social Rent, which are typically 50% to 60% of market prices, providing secure, affordable housing to people who need it most. It will also deliver new supported housing for some of the most vulnerable, providing much needed homes for older or disabled people with support needs.

Today’s funding allocations marks an important step towards the government’s mission to deliver up to 300,000 new homes a year by the mid-2020s.

Housing Secretary Robert Jenrick MP said:  “Creating more opportunities for home ownership is central to this government. This £9 billion funding is a landmark moment for our Affordable Homes Programme and will ensure good quality housing for all as we build back better after the pandemic.

“This huge funding package will make the ambition of owning a home a reality for families by making it realistic and affordable.

“We are also ensuring tens of thousands of new homes for rent are built in the years ahead, including social rent, so those on the lowest incomes can enjoy good quality, secure rented homes, built and managed by reputable providers.”

Today’s funding allocations are taken from the £11.5 billion Affordable Housing Programme which will deliver up to 180,000 new affordable homes should economic conditions allow.

Nearly £5.2 billion of the package announced today will be delivered outside London by Homes England, the government body responsible for housing delivery. The Greater London Authority (GLA) will deliver homes within London.

Nearly 90 new partnerships – made up of councils, housing associations and private providers – successfully bid for their share of programme funding.

CEO of Homes England Peter Denton said:  “Not only does today’s announcement give our new Strategic Partners the funding, flexibility, and confidence they need to build much needed affordable homes across the country, it also establishes a large network of organisations looking to share their skills and capabilities to expand the affordable housing sector and transform communities.

“By forming Strategic Partnerships with a wide range of public and private organisations, we are creating the conditions needed for institutional investment to catalyse affordable housing supply and in future give local authorities more of the tools they need to plan and act strategically, shaping their communities and building new homes.”

Executive Director of Public Impact at National Housing Federation, Rhys Moore said: “We welcome the announcement of the new strategic partners and are looking forward to supporting our housing association members, Homes England and the GLA to deliver the much needed affordable homes the country needs, including thousands of new homes for social rent for people on the lowest incomes.

“Importantly, this long-term certainty over funding will unlock additional opportunities which will enable housing associations to deliver even more homes.”

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terry sullivan

10:55 AM, 3rd September 2021, About 2 years ago

heard it all before--money will just fund more parasites in has

plus costs of housing up massively eg heat pumps cladding solar panels--all wom

most will end up going to new arrivals

Old Mrs Landlord

11:18 AM, 3rd September 2021, About 2 years ago

I suppose every little helps, but you can't help wondering if Jenrick has any grasp of the situation if he believes this will "ensure good quality housing for ALL". How many are already on waiting lists or in temporary accommodation? How many on the streets, sofa surfing or living with family because they cannot find anywhere to rent? How many Afghanis and Hong Kongers are coming here never mind illegal immigrants? His glib pronouncements bear no relation to reality.

Mick Roberts

11:32 AM, 3rd September 2021, About 2 years ago

Yes Jenrick has not got a clue. The bottom end rental tenants this won't affect at all. They will still be in the temporary accommodation.

Dennis Leverett

11:43 AM, 3rd September 2021, About 2 years ago

"Today’s funding allocations are taken from the £11.5 billion Affordable Housing Programme which will deliver up to 180,000 new affordable homes should economic conditions allow." I think that statement says it all, believe it when I see it, supply and demand, basic economics.

Laura Delow

11:55 AM, 3rd September 2021, About 2 years ago

£8.6m for this is admirable BUT the Government say they are fully funding the cladding issue crisis yet only £5m has been allocated to assist approx. 1m cladding leasehold prisoners (in truth could be as high as 4 times this if buildings of less than 18m are taken into account) versus an estimated cost of £15m. These leaseholders (many of whom were first time buyers & were encouraged to buy with government help thru shared ownership, help to buy etc) are now living in what is deemed a dangerous property that is completely worthless, unsaleable & unmortgageable, yet they are still having to pay their mortgage plus increased service charge costs because of increased buildings insurance premiums (with hiked up excesses or exclusions) & waking watch costs, and are facing bills of anywhere up to £120K per flat to rectify, many of whom will go bankrupt as a result of & if bankrupt, many could lose their jobs. These Leaseholders bought in good faith believing the building standards that developers had to meet imposed by government would protect them but they do not & the government & the construction industry is not accepting full responsibility for this which all came about because of the changes made in the mid-1980s to the building regulation system which they said was to make the UK system more effective and accessible but actually translated into the construction industry self regulating & cutting corners by using cheaper unsafe materials. These are the people that should be the Government's financial priority with the utmost urgency. Grenfell was over 4 years ago & at the current "slow" pace, Industry experts say the problem is so huge, it will take up to another 10 years to identify and fix all the buildings at risk but only if full funding is made available. These poor people deserve to be able to sleep at night & not have to spend every waking moment worrying about their safety, their home & their future.

Sally Mills

13:04 PM, 3rd September 2021, About 2 years ago

Reply to the comment left by terry sullivan at 03/09/2021 - 10:55
Good, at least they will take on the thousands of jobs now available in agriculture/ hospitality/ warehouse and lorry driving. It’s doesn't appear that our locals are rushing to take these jobs on.

Sally Mills

13:06 PM, 3rd September 2021, About 2 years ago

Reply to the comment left by Laura Delow at 03/09/2021 - 11:55
Very good point. The leasehold system needs abolishing, only the English and Welsh are stupid enough to put up with the outdated feudal system.

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