The Chancellor has today announced a £2 billion package of new grant funding to deliver up to 18,000 new social and affordable homes.
The £2 billion of new funding will only support development on sites that will deliver in this Parliament, helping the government to meet its 1.5 million housebuilding target. All projects funded through this £2 billion will need to start by March 2027 and finish by June 2029.
The majority of this funding will fall in 2026/27, following the government's current Affordable Homes Programme which is set to end in 2026.
However, the Financial Times noted that the £2bn extension of the existing Affordable Homes Programme actually marks a reduction in spending, as the original programme pledged £12bn over the five financial years to 2025/26, equating to £2.4bn per year.
Deputy Prime Minister and Housing Secretary, Angela Rayner, said: "Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.
"This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation."
Chancellor, Rachel Reeves, commented: "We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.
"At the conclusion of the current Spending Review process on 11 June 2025, the government will announce further long-term investment into the sector in England, delivering the biggest boost to social and affordable housing in a generation."
