The Ministry of Housing, Communities and Local Government (MHCLG) has shared details of the Social and Affordable Homes Programme announced at the Spending Review last month.
The programme aims to deliver 300,000 social and affordable homes, 60% of which (180,000) will be earmarked for social rent and linked to local incomes.
The new plan builds on the investment strategy laid out at the Spending Review and contains five steps that will ‘publicly signals to developers, councils, investors and to the public the government’s serious intent and ambition for social and affordable housing’.
“It also gives providers the stability and certainty they need to be able to borrow and invest in both new and existing homes knowing the government has a comprehensive plan for the sector,” the MHCLG statement noted.
The five steps outlined by MHCLG are: to deliver the biggest boost to grant funding in a generation; rebuild the sector’s capacity to borrow and invest in new and existing supply; establish an effective and stable regulatory regime; reinvigorate council housebuilding; forge a renewed partnership with the sector to build at scale.
Homes England will be responsible for delivering the majority of the £39 billion, with up to 30% of the funds supporting housing delivery from the Greater London Authority in the capital.
The statement continued:
“The long-term nature of the Social and Affordable Homes Programme will also offer more certainty for developers to invest and effectively plan housebuilding for the future, compared to the previous five-year £12.3bn 2021-2026 Affordable Homes Programme.
“The last five year 2021-26 programme averaged £2.3 billion per year – this means the government will be spending almost double this on affordable housing investment by the end of this Parliament (£4bn in 2029/30).”
The government is also seeking views on a new Decent Homes Standard and a Minimum Energy Efficiency Standard, both aimed at improving standards in the social renting sector. A wider package of reforms to the Right to Buy Scheme area also being proposed to ‘ramp up delivery of new homes’.
The package complements work already taking place to get Britain building including through the updated National Planning Policy Framework, the Planning and Infrastructure Bill and the new National Housing Bank, the government said.
Deputy prime minister and housing secretary Angela Rayner said:
“We are seizing this golden opportunity with both hands to transform this country by building the social and affordable homes we need, so we create a brighter future where families aren’t trapped in temporary accommodation and young people are no longer locked out of a secure home.
“With investment and reform, this government is delivering the biggest boost to social and affordable housing in a generation, unleashing a social rent revolution, and embarking on a decade of renewal for social and affordable housing in this country.”
Minister for energy consumers Miatta Fahnbulleh said:
“Everyone deserves to live in a warm, secure and affordable home, which is why we are setting out bold plans today to transform housing over the next decade.
“This includes proposals to introduce an energy efficiency standard for social housing for the first time ever, helping tenants benefit from cheaper energy bills and more efficient homes.”
The details are a sign the government is taking its housing commitments seriously, according to RICS CEO Justin Young. He commented:
“Housing supply and affordability are not the only important matters. Housing quality is a key concern and modernising the Decent Homes Standard is a forward step in the right direction. We are developing a social housing stock condition survey, which is another part of the puzzle.
“It is pleasing to see the Government commit to social housing that is energy efficient by updating Minimum Energy Efficiency Standards. Rising energy costs as well as net zero targets call for greater energy efficiency in social housing. This should lower bills for some of the most financially vulnerable and reduce carbon emissions.
“The fact that the Government is focusing on several key pillars to improve social housing demonstrates a fully-fledged vision for social housing that is necessary for successful transformation. RICS continues to work closely with the Government to ensure that social homes are safe, secure and sustainable.”
