The Prime Minister and Secretary of State, Angela Rayner, have allocated almost £10 billion to kick start a surge in social housing construction.
Prior to his promotion to PM, Mr Burnham said he would make housing a priority by launching ‘the biggest council housebuilding programme since the post‑war period’.
Two months on and long term funding has now been confirmed for 33 strategic partners – councils, housing associations and other providers – in a bid to follow through on the promise.
The government wants councils to get building again and says the millions offered to each area should deliver 70,000 homes across England.
Around 60% of homes delivered through these partnerships are expected to be for Social Rent, the most affordable form of rented housing.
Prime Minister 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.
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“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.” Secretary of State Rayner added: “I know how important fixing this is – because I’ve been there. A safe and secure home was the foundation for a better life - 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.”
The £10bn allocation is only the first stage of the ten-year programme. More than £16 billion remains to be allocated outside London which will be used to prioritise Social Rent homes and council housebuilding. Over £2 billion of the funding is expected to be spent in Mayoral areas outside of London. Over time, more funding is expected to flow directly to mayoral authorities as the programme develops, building on the Government’s commitment to move power and decision-making out of Whitehall.
Cllr Liam Robinson, Chair of the Local Government Association’s Inclusive Growth Committee, said: “Councils have long called for a sustained return to building genuinely affordable homes and stand ready to work with the government to deliver the revival in social housebuilding. The confirmed allocation of the first phase of the £39 billion fund and the increased Capacity to Build funding are positive steps to achieving this ambition. Given the key role for councils in delivering these homes, it is crucial they remain at the heart of delivery. Mayors should work closely with local authorities in their areas to achieve the most from this money, with councils also having sustained access to preferential borrowing rates to support viability.
Amy Rees, Chief Executive Officer at Homes England said: “Today’s 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.”
Gavin Smart, Chief Executive at the Chartered Institute of Housing, said: “It’s very welcome to see funding from last year’s Spending Review now being allocated and getting into the hands of Strategic Partners across the country, turning the government’s long-term commitment into homes that can make a real difference for families. We welcome the strong focus on homes for social rent and the ambition for council housebuilding, and the recognition of the vital role that councils, housing associations and other providers will play in delivering the next generation of genuinely affordable homes. If delivered at pace, this investment has the potential to reduce homelessness, ease pressure on temporary accommodation and help more people access a safe, secure and affordable home.”
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