Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Government Allocates £10bn for 70,000 Affordable Homes Outside London
The government has confirmed that £10bn will be spent on delivering 70,000 affordable homes outside London, with around 60% designated for social rent. The remainder of the homes will include shared ownership and sheltered housing.
This funding is part of the 10-year Affordable Homes Programme. The government plans to distribute the initial funding through 33 strategic partners, with three local councils participating directly in the programme for the first time. Funding commitments will cover the next decade.
Prime Minister Andy Burnham had previously called for the programme’s £39bn budget to be focused entirely on council housing, but the latest plans represent a shift from that position. London is set to receive a further £6bn, with allocation details to be announced at a later date.
Ministers state that the programme will support their target of delivering 300,000 affordable homes over the next ten years. However, industry and research organisations have raised concerns about whether the current approach will meet the Prime Minister’s earlier ambitions for council housebuilding.
The New Economics Foundation noted that with councils making up only a small proportion of delivery partners, the government may struggle to achieve its goal of the largest post-war council housebuilding programme. Blick Rothenberg, an audit and advisory firm, commented that while the funding is welcome, successful delivery will depend on planning, infrastructure, construction capacity, and collaboration among housing associations, developers, investors, lenders, and contractors. The firm also highlighted that only a small proportion of the funding has been allocated directly to councils.
Letting agents and inventory clerks should note that the majority of new affordable homes will be delivered by established organisations with existing development pipelines, rather than directly by local councils. The government’s approach prioritises partners with proven delivery capability.
Source: Property Industry Eye