Chancellor Rachel Reeves unveils a significant £5 billion investment aimed at fulfilling the government’s promise of delivering 1.5 million homes over the current parliamentary term.
- A substantial boost of £500 million is allocated to the Affordable Homes Programme to construct an additional 5,000 affordable homes.
- The investment plan includes £3.2 billion designated for affordable home projects and an additional £3 billion to support small house builders through housing guarantee schemes.
- Local authorities will retain full receipts from Right to Buy discounts, allowing reinvestment into housing stocks and new supply.
- A social housing rent settlement at the Consumer Price Index (CPI) plus 1% is announced, providing stability for social housing providers for the next five years.
The UK government has announced a monumental £5 billion investment in the housing sector, aligned with its pledge to construct 1.5 million homes within the current Parliament. This ambitious plan seeks to address the ongoing housing crisis and stimulate affordable home availability. The investment package includes a £500 million expansion of the Affordable Homes Programme, facilitating the development of up to 5,000 additional affordable homes.
Within the broader investment plan, £3.2 billion is earmarked for affordable housing initiatives, demonstrating the government’s commitment to ensuring adequate housing supply. In addition, £3 billion will be directed towards supporting small house builders via housing guarantee schemes. This multifaceted approach aims to bolster the private housing market and enhance the sector’s overall resilience.
Rachel Reeves confirmed adjustments to the Right to Buy policy, stating that discounts will be reduced. This measure permits local authorities to retain full receipts, empowering them to reinvest in housing stocks and contribute to new housing supply.
A pivotal part of the announcement was the establishment of a social housing rent settlement at CPI plus 1% for the upcoming five years. This decision seeks to provide much-needed stability to social housing providers, thus enabling long-term planning and sustainability.
As part of the ongoing strategy to expedite housing delivery, the government has initiated several supporting projects. These include the National Planning Policy Framework consultation, New Homes Accelerator, and New Towns Taskforce. Moreover, feedback is being sought on a proposed ‘brownfield passport’ to streamline development approvals. Additional details on future grant investments will be outlined in Phase 2 of the Spending Review, emphasising a focus on social rent housing.
The government’s comprehensive housing investment plan underlines its commitment to addressing the housing shortfall and fostering a more resilient housing market.
