Families trapped in temporary accommodation or stuck on housing waiting lists will be helped into safe, secure homes as the government kickstarts its record £39bn Social and Affordable Homes Programme.
On 25 August, the Prime Minister and Secretary of State, Angela Rayner, are announcing nearly £10 billion of allocations to build thousands more quality council, social and affordable homes.
The first wave of funding announced today will support the delivery of more than 70,000 homes across England. It will go to 33 Strategic Partners – councils, housing associations and other providers that have secured long-term funding certainty to deliver homes at scale. Today’s announcement also marks a major step in the ambition to get councils building at scale again.
Alongside housing associations, councils will be awarded Strategic Partner status with Homes England, helping put them firmly back at the heart of housebuilding. Around 60% of homes delivered through these partnerships are expected to be for Social Rent, the most affordable form of rented housing, helping more families access a secure home.
With almost 180,000 children growing up without a permanent home, the government is putting councils at the heart of housebuilding.
Prime Minister Andy Burnham said, “No child should be raised in a hostel room and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home.
“Nearly £10 billion will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest.
“Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”
Secretary of State Angela Rayner said, “Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live.
“I know how important fixing this is – because I’ve been there. A safe and secure home was the foundation for a better life – I couldn’t have got to where I have today without it.
“That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”
Over £2 billion of today’s funding is expected to be spent in Mayoral areas outside of London. As part of the government’s wider devolution agenda, Established Mayoral Strategic Authorities are setting the strategic direction for the programme in their areas, helping ensure investment reflects local priorities.
Over time, more funding is expected to flow directly to mayoral authorities as the programme develops, building on the Government’s commitment to move power and decision-making out of Whitehall.
Today’s allocation is only the first stage of the ten-year programme. More than £16 billion remains to be allocated outside London and in allocating this funding, we intend to prioritise Social Rent homes and council housebuilding, helping deliver the largest expansion of council housing in decades.
Mayor of Liverpool City Region, Steve Rotherham said, “Council housing is personal to me. I grew up in a council house in Kirkby, and I know what that security meant to my family. It gave my mum the chance to give us a stable start in life, without constantly worrying about keeping a roof over our heads. Every family deserves that same security.
“But we simply haven’t built enough council and social housing in this country. The consequences are all around us – families stuck on waiting lists, children growing up in temporary accommodation and young people wondering whether they’ll ever afford a place of their own.
“We’re starting to turn that around. Since I became Mayor, we’ve helped to build more than 36,000 homes and, with the £380 million we’ve secured, we’ll help to build another 3,000 – giving thousands of people the chance to put down roots, raise a family and build a life.
“We know our communities better than anybody in Whitehall ever could. We know where homes are needed and what local people want – good-quality, genuinely affordable homes, built in the right places.
“I want the Liverpool City Region to be at the forefront of the biggest revival in council housebuilding in a generation. We’ve spent decades talking about the need to build more council homes – now we’ve got a real opportunity to get on and do it. I want to see cranes in the sky and spades in the ground, getting on with building the homes our communities need.”
Amy Rees, Chief Executive Officer at Homes England said, “Today’s announcement marks an important step in delivering the government’s £39 billion Social and Affordable Homes Programme. Through these strategic partnerships and continuous market engagement, alongside Homes England’s wider investment including through the National Housing Bank, we can help unlock thousands of much-needed homes across England.
“By working with councils, mayors, housing associations and local partners, we can support the return of council housebuilding at scale, increase the supply of social rent homes and create thriving places that people are proud to call home.”
Today’s package goes further by helping councils access more of the funding available to the programme and make full use of Right to Buy receipts – with £1.61 billion raised from sales alone in the last financial year – and other available funding streams.
To support this ambition, the government is investing a further £46 million over the next three years to strengthen councils’ skills, expertise and capacity to bring forward ambitious housebuilding plans.
Housing associations and other providers will continue to play a vital role in delivering the social and affordable homes the country needs.
Alongside councils, they will be central to delivering the Government’s ambition to increase housebuilding and expand access to genuinely affordable homes.
Kate Henderson, Chief Executive of the National Housing Federation, said, “It is hugely welcome to see this much-anticipated funding confirmed, something we have been calling for to kickstart construction on tens of thousands of desperately needed new social homes.
“This is a major vote of confidence in not-for-profit housing associations and in the vital and distinct role they play in this country, as organisations that work for the long-term benefit of their communities.
“Housing associations have risen to the challenge of delivering the governments ambitions. Working in partnership with government, councils and mayors, they have used the support and certainty provided by government to rebuild their development capacity, invest in skills, and be the strong and reliable partners needed to build a new generation of social and affordable homes, alongside increasing investment in their existing homes. This is no better demonstrated than in the scale and ambition of the bids submitted to this Social and Affordable Homes Programme.
“We will continue work with national and local government to maximise housing associations’ potential to deliver new social rented homes during this parliament and over the next decade, meeting the housing needs of local people in every part of the country.”
The package builds on the government’s commitment to deliver 1.5 million homes this Parliament, including the biggest boost to council, social and affordable housing in a generation.
Gavin Smart, Chief Executive at the Chartered Institute of Housing, said, “It’s very welcome to see funding from last year’s Spending Review now being allocated and getting into the hands of Strategic Partners across the country, turning the government’s long-term commitment into homes that can make a real difference for families.
“We welcome the strong focus on homes for social rent and the ambition for council housebuilding, and the recognition of the vital role that councils, housing associations and other providers will play in delivering the next generation of genuinely affordable homes.
“If delivered at pace, this investment has the potential to reduce homelessness, ease pressure on temporary accommodation and help more people access a safe, secure and affordable home.”
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