The Government in the UK has confirmed plans for a new generation of council and housing association homes with funding for affordable homes to be increased by a further £2 billion to more than £9 billion.
“The numbers of homes will be determined on type and location of housing, and bids received for funding. With a typical £80,000 subsidy, this £2 billion investment can supply around 25,000 more homes at rents affordable for local people,” a Press Release from the Department for Communities & Local Government, said.
The funding will further support councils and housing associations in areas of acute affordability pressure, and where working families are struggling with the costs of rent and some are at risk of homelessness.
Since April 2010, around 333,000 affordable homes have been delivered, including 240,000 for rent. More than twice as much council housing has been built since 2010 than in the previous 13 years.
These latest measures reinforce the government’s approach to back housing of all tenures – with more social housing; extra security for those in the private rented sector; and helping people get onto the housing ladder, the Press Release said.
As the housing crisis continues to spiral out of control, the Government is coming up with interventional measures to make housing affordable.
The government’s Affordable Homes Programme will increase from £7.1 billion of public funding to £9.1 billion, and the £2 billion additional funding for affordable housing could lever in total investment by housing associations and councils of up to £5 billion.