Around 120,000 new homes will be built in an £8.6bn plan amounting to the largest single investment in affordable housing in a decade, says the government.
The Housing department says its Affordable Homes Programme will deliver 119,000 homes for young people and families, including 57,000 for ownership, 29,600 for social rent and 6,250 affordable rural homes.
Homes England, the government body responsible for housing delivery, will run the fund for housing outside London, while the Greater London Authority will administer the scheme inside the capital.
The Housing department says around 90 new partnerships — made up of councils, housing associations and private providers — will bid for the cash.
Housing secretary Robert Jenrick says: “Creating more opportunities for homeownership is central to this government. This £9bn funding is a landmark moment for our Affordable Homes Programme and will ensure good quality housing for all as we build back better after the pandemic.
“We are also ensuring tens of thousands of new homes for rent are built in the years ahead, including social rent, so those on the lowest incomes can enjoy good quality, secure rented homes, built and managed by reputable providers.”
The government says social housing rent is typically set at 50% to 60% of market prices.
The department says today’s funding is “an important step towards the government’s mission to deliver up to 300,000 new homes a year by the mid-2020s”.
It adds, the cash could support up to 370,000 jobs across the country for homebuilders, small business developers, and other firms that support the house building industry, such as electricians and plumbers, generating up to £26bn of other private and public investment.
Homes England chief executive Peter Denton adds: “Not only does today’s announcement give our new strategic partners the funding, flexibility, and confidence they need to build much needed affordable homes across the country, it also establishes a large network of organisations looking to share their skills and capabilities to expand the affordable housing sector and transform communities.
“By forming strategic partnerships with a wide range of public and private organisations, we are creating the conditions needed for institutional investment to catalyse affordable housing supply and in future give local authorities more of the tools they need to plan and act strategically, shaping their communities and building new homes.”
