The Government has announced that it will invest £1.67 billion to support a new generation of council homes for those in search of affordable rented housing.
The funding has been provided with a view to deliver approximately 23,000 affordable homes; of these, at least 12,500 will be designated for social rent, in areas where house prices are currently high. This step, according to Housing Secretary James Brokenshire, has been taken to provide families currently struggling to pay their rent with much-needed support.
As well as highlighting that the finding forms part of the Government’s affordable housing investment scheme, he also explained that both local authorities and social housing providers had been invited to bid for a share of £1 billion worth of extra borrowing as a way to boost housing delivery.
In due course, a list of councils who have had their borrowing caps increased will be announced.
Setting out the plans, James Brokenshire said: ‘The Government has ambitious plans to fix the broken housing market and build the homes our communities need. Today’s announcement is a further milestone. It will secure the delivery of an additional 23,000 much needed affordable homes as well as paving the way for a new generation of council houses.
‘The majority of these new homes will be in high cost areas helping to ease the burden of rent on hard working families and delivering stronger communities. A bidding process will now begin for both programmes, with successful bids for the affordable homes funding notified throughout the year.’