The Prime Minister has pledged to invest £20 billion to provide up to 18,000 new social and affordable homes, but critics believe the amount appears to be lower than the average price the government has spent over the past five years.
The Treasury Department announced a cash injection, which is Rachel Reeves’ spring statement tomorrow, part of its broader commitment to build 1.5 million homes.
“The £20 billion investment boost is a prepayment ahead of planned long-term investments in social and affordable housing later this year, as the government resolves the housing crisis that has prevented working families from stabilizing and safe.”
However, the Financial Times reported that the £20 billion is an extension of the existing affordable housing scheme launched by the Conservative Party in 2020, which will provide £12 billion in the five fiscal years 2025/26.
The current plan is £2.4 billion a year, £400 million higher than the Prime Minister’s latest commitment.
However, the Treasury statement did not specify which period the £20 billion investment covered, and said the government would announce further long-term investments at the end of its June 11 expenditure review.
“We are addressing the housing crisis in this country, which is the biggest driving force in the society and affordable housing construction for a generation.
“Today’s announcement will help drive growth through our change program by delivering up to 18,000 new homes as well as jobs and opportunities, thus bringing more money into the pockets of workers.”
Kate Henderson, CEO of the National Housing Federation, said: “This funding top-up is welcome and demonstrates the government’s commitment to providing truly affordable social housing for families in need across the country.
“Add an additional £20 billion will block the cliff edge of new homes before the next announced funding plan.
“Social housing is the only safe and affordable housing for low-income families, and the terrible shortages lead to poverty, overcrowding and homelessness at an increasing rate.”
