Key facts
- Labour MP Abena Oppong-Asare is urging Chancellor John Healey to release planned spending for social and affordable homes sooner.
- Housing associations are ready to build tens of thousands more affordable homes if additional government funding is provided.
- The Social and Affordable Homes Programme (SAHP) has a total of £39 billion allocated over 10 years.
- Housing associations could build an additional 41,000 homes outside London if they received more government funding.
- The National Housing Federation estimates an additional £5.3 billion is needed to build these extra homes.
- Ministers have already allocated nearly £10 billion from the SAHP to build over 70,000 homes.
Labour MP Abena Oppong-Asare has called on Chancellor John Healey to expedite the release of billions of pounds designated for social and affordable housing in England. Housing associations have indicated their capacity to construct tens of thousands of additional homes if the funding, part of the £39 billion Social and Affordable Homes Programme (SAHP), is allocated sooner than planned.
Oppong-Asare urged the government to use the upcoming budget to increase social home building by ensuring a significant portion of the SAHP is allocated within the current parliamentary term, emphasizing the immediate need for families on social housing waiting lists. She stressed the importance of prioritizing truly affordable social rent homes within this package.
The £39 billion, 10-year fund was initially announced by former Chancellor Rachel Reeves. The money was intended for a mix of council houses and other affordable housing types, including affordable rents and shared ownership schemes. However, a previous allocation of £10 billion in August went to councils and housing associations outside London for various subsidized homes, with ministers stating this would help build 70,000 new homes.
Housing associations contend they could have built an additional 41,000 homes, including 25,000 for social rent, if they had received the full funding they bid for. They also stated they could begin construction on 15,000 of these within three years. The National Housing Federation (NHF) estimates that an additional £5.3 billion from the SAHP is required to achieve this increased output.
Ministers have announced plans to allocate £6 billion to London immediately. Of the remaining £13 billion, a significant portion is slated for distribution in the latter half of the program, which would extend beyond the next general election. Kate Henderson, CEO of the NHF, highlighted that many organizations with ready sites and proven track records did not receive the necessary funding to deliver the homes they planned.
A spokesperson for the Ministry of Housing stated that nearly £10 billion has already been allocated, supporting the construction of over 70,000 council, social, and affordable homes. The ministry emphasized that this investment aims to provide safe and secure homes for families in temporary accommodation or on waiting lists.