The government has set out its longer term plans for social and affordable housing, including five key steps which will underpin ‘the biggest increase in supply in a generation alongside a transformational and lasting change in the safety and quality of homes’.
The five steps are:
- Deliver the biggest boost to grant funding in a generation
- Rebuild the sector’s capacity to borrow and invest in new and existing supply
- Establish an effective and stable regulatory regime
- Reinvigorate housebuilding
- Forge a new relationship with the sector to build at scale
The plan published to coincide with fiscal announcements in the Comprehensive Spending Review including:
- A 10-year £39 billion Social and Affordable Homes Programme (SAHP) to deliver around 300,000, at least 60% of which will be for social rent.
- A rental settlement based on CPI+1% for 10 years with the potential to include a convergence mechanism.
- £2.5 billion of low-interest loans over the Spending Review period to support the delivery of new social and affordable housing.
