Today the Housing Secretary, Robert Jenrick, has announced a £12 billion investment in housing to help the country build back better, including affordable homes for social rent to help the most vulnerable in society.
This investment in affordable housing comes alongside new measures to make it easier to get a foot on the property ladder.
The new £11.5 billion Affordable Homes Programme will be delivered over 5 years from 2021 to 2026, providing up to 180,000 new homes across the country. In addition, the programme will unlock a further £38 billion in public and private investment in affordable housing, representing the biggest single funding commitment to affordable housing in a decade.
Commenting on the announcement, James said -
This announcement provides much needed boost to our affordable housing supply.
I hope that the council, housing associations, and private providers in North West Norfolk will apply for these schemes to help provide new homes to own and rent."
The first new homes will be made available from next year, and around half will be available for affordable home ownership. The rest will be made available for discounted rent, including 10% for supported housing, to support those with physical or mental health challenges. Funding for Social Rent, which is typically 50 to 60% of market prices, will be available to housing providers across the country, providing secure, affordable housing to families who need it most.
A Right to Shared Ownership will be available on the vast majority of rented homes delivered through the new programme, providing tenants with a pathway into ownership by giving them the right to purchase a stake in their home.
Nearly £7.5 billion will be spent outside London by Homes England, the government’s housing accelerator. This is over £2 billion more than the amount given under the previous Affordable Homes Programme, underlining the government’s commitment to levelling up the whole country.
Homes England will publish their Affordable Homes Programme prospectus this week, inviting councils, housing associations and private providers to start preparing their bids. New homes will be delivered from next year.
The Housing Secretary has also announded a new model for Shared Ownership that will help more people onto the property ladder by vastly reducing the minimum initial share, and launching a consultation to ensure new homes deliver the accessibility that families need. In summary, the new Shared Ownership model will:
- reduce the minimum initial share you can buy in a property from 25% to 10%
- allow people to buy additional shares in their home in 1% instalments, with heavily reduced fees
- introduce a 10-year period for new shared owners where the landlord will cover the cost of any repairs and maintenance
Additionally, the Housing Secretary has today launched a consultation to consider how best to raise accessibility standards for all new homes in recognition of the importance of suitable homes for older and disabled people.