As we have reported, the Chancellor has announced an injection of £2 billion to the Affordable Homes Programme with the aim of delivering up to 18,000 new social and affordable homes. We discuss the announcement in more detail in this article.
The latest announcement comes off the back of an earlier announcement of a plan for training 60,000 construction workers, and other recent funding announcements totalling nearly £3bn. The announcement is aimed at balancing the less good news of the spending cuts outlined in the Spring Statement. The new funding represents a 'down-payment' for the new funding programme for delivery of affordable housing that is to be announced in the Spending Review in June.
The Government is encouraging providers to bring forward new projects. For those looking to develop much needed new social and affordable homes with the benefit of the additional government subsidy, the Chancellor's statement includes the following clarifications:
- Majority of the new funding allocated in 2026/27, but with a 'tail' of funding to cover completions of homes after this date.
- All projects to start by March 2027, and finish by June 2029.
- Funding to be made available on same terms as AHP 2021-26.
- Homes England, GLA and bidders to prioritise homes for social rent.
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