John Baron MP welcomes biggest single funding commitment to affordable housing in ten years

MP says this will help people get a foot on the housing ladder

The Government has recently announced a £12.2 billion investment in affordable housing, including £700 million of spending on the existing Affordable Homes Programme (2016-2022) as well as a new £11.5 billion on the Affordable Homes Programme (2021-2026). This is the highest single funding commitment to affordable housing in ten years and will unlock a further £38 billion in public and private investment in affordable housing, with new homes available from next year.

The £11.5 billion will deliver up to 180,000 new homes, dependent on economic conditions, and it is the Government’s ambition that approximately 50% of the new homes will be able to buy under the new shared ownership model, helping even more people to get a foot on the housing ladder. In addition, more housing association tenants will be able to become homeowners through the new Right to Shared Ownership.

The remainder of the programme will deliver homes for discounted rent, including Affordable and Social Rent. 10% of homes will be used to increase the supply of much-needed specialist or supported housing. As part of the Government’s levelling up agenda, £7.4 billion has been given to Homes England to deliver affordable homes outside London, £2 billion more than the previous programme. The Government has also offered the Mayor of London £4 billion to help with acute housing challenge in London, with negotiations with the Greater London Authority ongoing.

John said,

“These major investments in affordable housing will make a real difference to people who are striving to get the first rung on the property ladder, and it is welcome news that funds in particular are being directed into new homes outside London. Reforms to shared ownership will further widen the opportunity of home ownership, and I hope individuals will consider these schemes when planning for their futures.”

Notes to Editors:

• The new shared ownership model will reduce the minimum initial ownership stake from 25% to 10%, making it easier to save a deposit. The new model will also make it easier and more manageable to increase your stake in the home, as shared owners will be able to staircase in smaller instalments of as little as 1%, down from 10%.

• Shared owners will also benefit from a 10-year ‘repair free’ period during which the shared owner will not have to pay repairs or maintenance costs. This will help bridge the gap between renting and home ownership, and will prevent shared owners being hit with repairs and maintenance bills.

• These new measures will apply to all new shared ownership homes delivered through the new Affordable Homes Programme, and the Government will also set an expectation that the standard model is used for shared ownership delivered through the planning system.

• In addition to these reforms, the vast majority of new rented homes delivered through the new Affordable Homes Programme will provide tenants with the Right to Shared Ownership, giving tenants the opportunity to purchase a stake in their home should they wish to do so.