The chancellor has pledged a £2bn investment to deliver up to 18,000 new social and affordable homes, but critics argue the sum appears to be lower than the average spent by the government on affordable housing over the past five years.
The Treasury announced the cash injection ahead of Rachel Reeves’ Spring Statement tomorrow, as part of its wider promise to build 1.5 million homes.
It says: “The £2bn investment boost comes as a down payment from the Treasury ahead of more long term investment in social and affordable housing planned later this year, as the government tackles the housing crisis that has held working families back from the stability and security that comes with a safe roof over your head.”
However, the Financial Times reports that the £2bn is an extension of the existing Affordable Homes Programme, launched in 2020 by the Conservatives, which was to provide £12bn over the five financial years to 2025/26.
The current programme amounts to £2.4bn per year, or £400m more than the chancellor’s latest pledge.
However, the Treasury’s statement does not make it clear exactly which period the £2bn investment covers and it says the government will announce further long-term investment when its spending review concludes on June 11.
Reeves says: “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.”
National Housing Federation chief executive Kate Henderson says: “This funding top-up is hugely welcome and demonstrates the government’s commitment to delivering genuinely affordable, social housing for families in need across the country.
“The additional £2bn will prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced.
“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness.”
