A Comeback For Council Houses

The government has announced its first wave of funding from the £39 billion Social and Affordable Homes Programme. Most of it will go on huge council housebuilding revival.

The Prime Minister and Secretary of State, Angela Rayner, said on 25 August that nearly £10 billion of allocations to build thousands more council, social and affordable homes was to be imminently released, claiming it will support the delivery of more than 70,000 homes across England.

The money will go to 33 Strategic Partners – councils, housing associations and other providers. The announcement also marks a major step in the ambition to getting councils building at scale again. 

Homes England

Alongside housing associations, councils will be awarded Strategic Partner status with Homes England. Around 60% of homes delivered through these partnerships are expected to be for Social Rent, the most affordable form of rented housing.

Good homes

Prime Minister Andy Burnham said:  “No child should be raised in a hostel room and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home.

“Nearly £10 billion will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest.

“Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”

No home Rayner

Secretary of State Angela Rayner said: “None of us should spend years waiting for somewhere safe and affordable to live – I’ve been there. A safe and secure home was the foundation for a better life and I couldn’t have got to where I have today without it.

“That’s why the Prime Minister and I are doing everything we can to get councils building once again. It’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.

Local priorities

Over £2 billion of the first tranche of funding is expected to be spent in Mayoral areas outside of London. As part of the government’s wider devolution agenda, Established Mayoral Strategic Authorities are setting the strategic direction for the programme in their areas, helping ensure investment reflects local priorities. Over time, more funding is expected to flow directly to mayoral authorities as the programme develops.

This first allocation is only the first stage of the ten-year programme. More than £16 billion remains to be allocated outside London.

National Housing Bank

Amy Rees, the chief executive officer at Homes England said: “This announcement marks an important step in delivering the government’s £39 billion Social and Affordable Homes Programme. Through these strategic partnerships and continuous market engagement, alongside Homes England’s wider investment including through the National Housing Bank, we can help unlock thousands of much-needed homes across England. By working with councils, mayors, housing associations and local partners, we can support the return of council housebuilding at scale, increase the supply of social rent homes and create thriving places that people are proud to call home.”

Right to Buy receipts

The package goes further by helping councils access more of the funding available to the programme and make full use of Right to Buy receipts – with £1.61 billion raised from sales alone in the last financial year – and other available funding streams. 

To support this ambition, the government is allocating a further £46 million over the next three years to strengthen councils’ skills, expertise and capacity to bring forward ambitious housebuilding plans.

London calling

London will receive a major boost for housebuilding, reflecting the acute need for affordable housing in the capital.

The Greater London Authority intends to offer at least £6 billion through the programme, with councils expected to deliver more than half of the homes funded in London.

The Mayor of London, Sadiq Khan, said: “Tackling the housing crisis is one of my top priorities and I’m doing everything I can to deliver more affordable homes that Londoners desperately need. We’ve built record numbers of council homes in London, yet the number of families and children without a permanent home stuck on housing waiting lists is still unacceptable.

Thousands of Londoners will benefit from this new wave of new social and affordable homes, which will help people out of temporary accommodation and provide good, affordable homes to live in for the long-term, as we build a fairer, better London for everyone.”

The Mayor of London, Sadiq Khan

Housing associations

Housing associations and other providers will continue to play a vital role in delivering the social and affordable homes the country needs. 

Kate Henderson, Chief Executive, National Housing Federation, said: “It is hugely welcome to see this much-anticipated funding confirmed, something we have been calling for to kickstart construction on tens of thousands of desperately needed new social homes.

“This is a major vote of confidence in not-for-profit housing associations and in the vital and distinct role they play in this country as organisations that work for the long-term benefit of their communities.

“Housing associations have risen to the challenge of delivering the governments ambitions. Working in partnership with government, councils and mayors, they have used the support and certainty provided by government to rebuild their development capacity, invest in skills and be the strong and reliable partners needed to build a new generation of social and affordable homes, alongside increasing investment in their existing homes. This is no better demonstrated than in the scale and ambition of the bids submitted to this Social and Affordable Homes Programme.”

Picture with thanks to Novastruct: Middlewood Locks in Manchester. Home building in the city and others across England will benefit from funds released from the Social and Affordable Homes Programme.

www.novastructeurope.co.uk