£350 million invested to increase number of affordable and social homes, support homeownership and ease council housing pressures
Thousands more people will be able to benefit from the security and safety of a high-quality home thanks to a £350 million injection to get Britain building, alongside plans to drive up standards and tackle rogue landlords in supported housing.
Up to 2,800 extra homes will be built through a £300 million boost to the Affordable Homes Programme, with half of these homes for social rent, and over 250 more council homes through a £50 million boost to the Local Authority Housing Fund to provide homes for those in need of better-quality temporary accommodation.
This supports plans to get Britain building and deliver the biggest increase in social and affordable housebuilding in a generation, turning the tide against the unacceptable housing crisis in this country. A generation have been locked out of owning their own home, while there are over 123,000 households in temporary accommodation, including nearly 160,000 children, and almost 6,000 families with children are in B&B accommodation.
Further changes will also be set out imminently by the government to help the most vulnerable in society, with a crack down on exploitative behaviour by rogue and criminal supported housing landlords, who are costing the taxpayer by claiming uncapped housing benefit in return for providing squalid homes for the most vulnerable, leaving them without the care or support they need.
This will further deliver on our Plan for Change commitment to get Britain building, delivering the 1.5 million homes this country needs, while boosting living standards.
Deputy Prime Minister and Housing Secretary Angela Rayner said:
"For so many families, and their children, the security and safety of a home of their own remains firmly out of reach - and instead they have to live in temporary accommodation, including in B&Bs.
"This is unacceptable and is the result of the housing crisis we are facing head on. That's why we're driving forward on our plans to ensure a better future for everyone who needs a safe home, building on our plans to drive up living standards and build 1.5 million homes through our Plan for Change."
Kate Henderson, Chief Executive of the National Housing Federation, said:
"Today's funding announcement demonstrates that the government recognises that boosting funding for new affordable homes, particularly those for social rent, is essential to meeting its ambitious housing targets and commitment to building a generation of new social homes.
"Housing associations share the government's housing ambitions and we welcome this top-up to the Affordable Homes Programme. The funding announced today - in addition to the funding announced in the autumn - will help maintain momentum in the delivery of much needed social and affordable housing ahead of the new Affordable Homes Programme being announced at the Spending Review.
"Housing associations are facing a number of financial challenges due to decades of funding cuts. Alongside this vital funding injection, we hope to see a package of supportive measures at the upcoming Spending Review to enable the sector to build the homes our country needs."
Gavin Smart, Chief Executive, Chartered Institute of Housing, said:
"The housing crisis is one of the biggest challenges facing the country, and we know that increasing the supply of truly affordable homes is key to tackling homelessness, easing pressure on local authorities, and driving economic growth. This additional investment into affordable housing is therefore very welcome and will help support the delivery of much-needed affordable homes ahead of a new Affordable Homes Programme (AHP) at the forthcoming Spending Review.
"The confirmation that 50% of the additional investment in the AHP will be used to support building new homes at social rent is particularly welcome as these are the most affordable and needed. Expanding the Local Housing Fund will help local authorities respond to the huge rise in the need for temporary accommodation which has put huge pressure on council funds and made life very difficult for some of the most vulnerable. Going forward, we hope the government will use the next fiscal update to confirm sustained, long-term investment to meet the scale of demand and ensure everyone has access to a safe, secure, and affordable home.
"We also welcome confirmation of action to implement the Supported Housing (Regulatory Oversight) Act. It is right that the government moves to clamp down on a small minority of exploitative supported housing landlords who are providing unacceptable poor homes to vulnerable people. We look forward to seeing more details here and to working with government, housing providers, and local authorities to ensure these commitments translate into real change on the ground."
The boost follows on from the £500 million investment at the Budget for up to 5,000 more homes affordable homes, further backing the programme's original £11.5 billion which is expected to result in up to 130,000 homes by 2026, and the £450 million already provided to 150 councils across the country to help ease pressure on homelessness services, reduce spending on unsuitable B&B accommodation, and provide safe and sustainable housing.
The investment will support a mix of tenures, with a focus on delivering homes for social rent.
Alongside the £50 million increase to the Local Authority Housing Fund, approximately £30 million of funding is being reallocated from previous rounds, taking the number of houses that will be delivered by the third round to more than 2,700 homes. Councils that submitted applications will be contacted in the following few days to inform them of the funding allocations.
The government will imminently set out plans to crack down on exploitative behaviour by rogue and criminal supported housing landlords who are costing the taxpayer by claiming uncapped housing benefit in return for providing squalid homes for some of the most vulnerable, leaving them without the care or support they need.
These plans respond to horrendous cases, including criminal gangs buying large properties and putting vulnerable people in mouldy rooms with just a bed, then providing no care, and other cases where rape victims have been housed with sex offenders. In areas like Blackpool, Birmingham, Blackburn and Hull whole streets have been overcome with open drug use and anti-social behaviour. A new licensing scheme, tougher standards, and the ability to stop housing benefit going to rogue landlords are all part of the plan, to be unveiled next week.
This supports wider work to improve housing for millions of working people across the country, and builds on the commitment to change the way homes are bought and sold, saving them time and money by modernising the way the system works and helping stop property transactions falling through.
To get Britain building, the government has already:
- Launched a New Homes Accelerator to unblock thousands of homes stuck in the planning system.
- Set up an independent New Towns Taskforce, as part of a long-term vision to create large-scale communities of at least 10,000 new homes each.
- Awarded £68 million to 54 local councils to unlock housing on brownfield sites.
- Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.
- Announced an additional £3 billion in housing guarantees to help builders apply for more accessible loans from banks and lenders.
- Extended the existing Home Building Fund for next year providing up to £700 million of vital support to SME housebuilders, delivering an additional 12,000 new homes.
- Cutting red tape so up to 10,000 more apprentices will be able to qualify per year including in key industries like construction
