Chancellor Reeves has loosened her borrowing to support our sector
Today, Chancellor of the Exchequer Rachel Reeves has announced £39billion worth of funding to support the delivery of social and affordable homes over the next ten years.
The announcement was made in the House of Commons as part of the UK Government’s latest spending review.
The spending review contains a raft of measures designed to help the Labour Government, elected last July, meet its target of building 1.5 million new homes before the next General Election which is scheduled to take place in 2029.
The measures include:
· An increase in the amount of funding released by the Affordable Homes Programme (AHP) from £2.5billion each to nearly £4billion per year
· A 10-year social rent settlement that will set a rent policy for social housing from 2026
· An announcement of consultation on the re-introduction of rent convergence.
The increased funding for social housing has been paid for by a relaxation in Chancellor Rachel Reeves ‘fiscal rules’ with more allowance now made for borrowing for capital investment.
Responding to the Chancellor’s news for builders of affordable homes our Sales and Partnership Manager Mike Doolan said: “Yesterday’s announcement represents a significant step forward for the social housing sector. It’s hugely encouraging to see this level of commitment to funding homes for social rent and supporting housing associations.
“With this increased investment, LoCaL Homes is ready to help housing providers accelerate delivery by using modern methods of construction (MMC).
“Our precision-manufactured homes can be built faster, more efficiently, and to high environmental standards—helping associations make the most of this funding and meet urgent housing needs more quickly.”