£350M boost to affordable housing

The UK government has announced a £350M investment to accelerate the construction of affordable and social housing, addressing the ongoing housing crisis and easing pressure on local authorities.

The funding includes a £300M injection into the Affordable Homes Programme, enabling the development of 2,800 new homes, half of which will be for social rent. Additionally, a £50M increase to the Local Authority Housing Fund will support the construction of over 250 council homes, providing better-quality temporary accommodation for those in need.

This latest investment is part of the government’s Plan for Change, which aims to deliver 1.5 million new homes and reverse a decade of declining housebuilding rates. With over 123,000 households in temporary accommodation and a growing number of families in unsuitable housing, the move signals a renewed commitment to expanding the country’s housing stock.

Support for the construction industry and Local Authorities

The UK construction sector stands to benefit from this funding boost, with more projects in the pipeline and an emphasis on social and affordable housing development. The investment follows a £500 million commitment announced in the Budget to deliver an additional 5,000 affordable homes, as well as the £11.5 billion originally allocated to the Affordable Homes Programme.

Kate Henderson, Chief Executive of the National Housing Federation, welcomed the announcement: “Boosting funding for affordable homes, particularly social rent, is essential to meeting ambitious housing targets. This top-up will maintain momentum in delivering much-needed housing, especially ahead of the new Affordable Homes Programme at the upcoming Spending Review.”

Gavin Smart, Chief Executive of the Chartered Institute of Housing, added: “The housing crisis remains one of the biggest challenges in the UK. Increasing the supply of truly affordable homes is crucial for tackling homelessness and easing pressure on local authorities. We hope to see sustained long-term investment to meet demand.”

Crackdown on rogue Supported housing landlords

In addition to funding new homes, the government is set to introduce reforms to tackle exploitative landlords operating in the supported housing sector. Rogue landlords have been found charging uncapped housing benefits while providing substandard accommodation and neglecting vulnerable tenants. Cases of criminal landlords housing victims alongside offenders, and entire streets suffering from drug abuse and anti-social behaviour, have been reported in cities such as Birmingham, Blackpool, and Hull.

New measures will include:
✔ A new licensing scheme to regulate landlords
✔ Stronger standards to improve accommodation quality
✔ Stricter control over housing benefit payments to prevent abuse

This move is part of a broader effort to improve housing conditions, support vulnerable individuals, and protect taxpayer money from fraudulent claims.

Further action to boost housebuilding

The latest housing investment builds on several recent government initiatives aimed at stimulating housebuilding and supporting the construction industry, including:

🏗️ New Homes Accelerator – Unblocking thousands of stalled housing projects
🏗️ New Towns Taskforce – Developing large-scale communities with at least 10,000 homes each
🏗️ Brownfield Development Funding – £68 million allocated to unlock housing on previously developed land
🏗️ Planning System Reforms – Reducing red tape to fast-track developments
🏗️ Housing Guarantees – £3 billion in guarantees to help builders secure loans
🏗️ Support for SME Housebuilders – £700 million for small and medium-sized builders to construct 12,000 new homes

Looking ahead

With further details on long-term housing investment expected in the upcoming Spending Review, the construction sector can anticipate new opportunities and greater demand for skills, materials, and expertise.

The government’s focus remains on getting Britain building, ensuring high-quality homes are delivered, and creating a sustainable housing market for the future.

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