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The UK government has announced the first GBP 10 billion funding phase of its lower-cost housing programme, which is expected to support the construction of more than 70,000 new homes. More than GBP 7 billion of the initial funding will be allocated to London, while around 60% of the homes delivered through the programme will be offered at social rents. The funding forms part of a previously announced GBP 39 billion housing investment planned over 10 years. The programme will also give local councils and mayoral authorities a greater role in delivering housing and setting development priorities.
The UK government has announced the first GBP 10 billion funding phase of its lower-cost housing programme, with London set to receive more than GBP 7 billion of the initial allocation.
The funding will support the construction of more than 70,000 new homes, with around 60% expected to be provided at social rents. Social rent is a subsidised form of rental housing that can be delivered by local councils or housing associations.
The proportion of social-rent homes is in line with the approach established under former Prime Minister Keir Starmer, whose government created the programme. However, it is below Prime Minister Andy Burnham’s pledge to have all housing delivered through the programme built by local councils.
Burnham, who took office in July, has supported greater council involvement in social housing construction. He has argued that expanding council housebuilding could reduce the amount of welfare spending directed towards private landlords, help reduce homelessness and provide greater housing security for people on lower incomes.
Housing minister Matthew Pennycook said local councils did not yet have the capacity to take on the entire programme.
The latest funding represents the first tranche of a previously announced GBP 39 billion investment planned over 10 years. In the longer term, more than GBP 16 billion of the total funding will be allocated outside London, with social-rent homes and council housebuilding set to receive priority.
Under the first phase, local authorities in London are expected to deliver more than half of the new homes supported by the funding. The government said the programme would also support its wider devolution plans by giving mayoral authorities greater powers to set the strategic direction for housing in their areas.
The focus on council-led housing comes as the UK continues to face pressure to increase the supply of affordable homes and provide more rental options for lower-income households. The government’s decision to allocate a large share of the first funding tranche to London reflects the capital’s housing requirements, while the planned investment outside London is intended to support housing delivery across other parts of the country.
Source Reuters
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