Key facts
- The government announced an initial £10bn investment from the Affordable Homes Programme.
- This funding will support the construction of approximately 70,000 homes outside London.
- About 60% of these homes will be social rented houses, with the remainder being shared ownership and sheltered housing.
- London will receive a further £6bn at a later stage.
- The program aims to contribute to the goal of building 300,000 affordable homes over the next decade.
- For the first time, three local councils are among the 33 "strategic partners" guaranteed funding.
Andy Burnham, the Mayor of Greater Manchester, has adjusted his position on the government's housing strategy, moving away from his previous demand that the entire Affordable Homes Programme be dedicated solely to building social homes. The government's announced plan allocates an initial £10 billion from the 10-year program towards a mix of housing types, including social rented houses, shared ownership schemes, and sheltered housing, aiming to construct approximately 70,000 homes outside London.
Burnham had previously stated that the £39 billion allocated over a decade should be exclusively for council homes, emphasizing the importance of control. However, the current £10 billion investment will see about 60% of the homes built as social rented properties, with the remainder comprising other affordable housing options. An additional £6 billion is earmarked for London, to be allocated later.
Ministers stated that this investment is a step towards their goal of building 300,000 affordable homes within the next decade. The funding will be distributed through 33 "strategic partners," who will receive guaranteed support for the next ten years. Notably, three local councils are included as partners for the first time, aligning with Burnham's vision for a significant council housebuilding program.
Housing Secretary Angela Rayner emphasized the transformative impact of secure, affordable housing, drawing on her personal experience. Sarah Elliott, CEO of the charity Shelter, welcomed the renewed focus on councils delivering social homes but urged the government to address underlying barriers, such as housing debt, in the upcoming budget to fully realize the ambition for new social housing.