£8.6 billion for affordable homes to give boost onto housing ladder

Thousands of people will be helped onto the housing ladder as funding is allocated across England.

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.

The 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 per cent discount on the open market value, and the 95 per cent mortgage guarantee scheme, which helps first-time buyers secure a mortgage with just a five per cent deposit.

The funding will also deliver nearly 30,000 homes for Social Rent, which are typically 50 per cent to 60 per cent 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.

The 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,” he added.

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