Charities hail ‘biggest cash injection in affordable housing in half a century'
The 'biggest cash injection' in social and affordable homes in England has been welcomed by charities and housing providers.
Chancellor Rachel Reeves said the Government will invest £39 billion over the next decade.
Delivering her spending review statement in the Commons on Wednesday, she said social housing had been 'neglected for too many decades' and that she wanted to ensure people had the 'security of a proper home'.
She said: 'A plan to match the scale of the housing crisis must include social housing – neglected for too many decades, but not by this Labour Government.'
Ms Reeves said the Government, led by Deputy Prime Minister Angela Rayner – who is also Housing Secretary – is now 'taking action'.
Ms Reeves added: 'I am proud to announce the biggest cash injection into social and affordable housing in 50 years – a new Affordable Homes Programme in which I am investing £39 billion over the next decade.
'Direct Government funding to support housebuilding especially for social rent and I am pleased to report that towns and cities including Blackpool, Preston, Sheffield and Swindon already have plans to bring forward bids to build those homes in their communities.'
The Treasury said the programme will be delivered over 10 years from 2026‑27 to 2035‑36 and spending will reach £4 billion per year in 2029-30, subsequently rising in line with inflation.
Housing charity Shelter has described the funding as 'a watershed moment in tackling the housing emergency' and a 'huge opportunity to reverse decades of neglect and start a bold new chapter for housing in this country'.
The charity called for a clear target for delivering social rent homes.
Social rent homes are known as social housing, where rents are linked to local incomes, and can cater for people living in temporary accommodation, meaning they are officially classed as homeless.
Affordable housing is wider, covering things such as affordable rent and shared ownership.
Shelter estimated, using guidance on previous announcements on investment in affordable housing, that if 60% of funding goes towards social rent homes this could mean around 26,000 of these are delivered each year after five years.
A charity spokeswoman added: 'If this is coupled with measures to get developers building their fair share, we're confident the Government could ramp up to between 30,000-40,000 social rent homes per year – this is close to the levels of the last Labour government (40,000 per year).
'While this isn't enough to end homelessness for good, it's much higher than the current rate of delivery, which is around 10,000 social rent homes per year.
'We need 90,000 social rent homes a year for 10 years to clear social housing waiting lists and end the housing emergency.'
Kate Henderson, chief executive of the National Housing Federation, described the funding as a 'transformational package' for social housing which will 'deliver the right conditions for a decade of renewal and growth'.
She said: 'This is the most ambitious affordable homes programme in decades and alongside long-term certainty on rents, will kickstart a generational boost in the delivery of new social homes.
'Housing associations look forward to working in partnership with the government and with a Deputy Prime Minister who has tirelessly championed social housing.'
Riverside, which describes itself as one of the largest and most experienced housing association groups in the country, said this was a 'historic and ground-breaking funding settlement for social landlords'.
Its chief executive, Paul Dolan, said: 'The Affordable Homes Programme marks a major step in boosting the amount of social housing which is crucial if we are to cut the record number of homeless families living in temporary accommodation.
'We hope to see dedicated funding for urban regeneration play a significant part of the AHP.
'As an organisation, we have seen first-hand the difference regeneration makes in improving the quality of homes, neighbourhoods and the health and economic prospects of residents.
'With one in every six children living in an overcrowded home, dedicated regeneration funding can transform communities up and down the country.'
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