The prospectus inviting bids for the government’s investment in affordable housing, and new measures to make it easier to get a foot on the property ladder, are being launched this week.
In total, the new programme represents the highest single funding commitment to affordable housing in a decade.
The £12.2bn overall investment in affordable housing was confirmed in the Budget, which also includes £700m on new homes through the 2016-2022 programme.
A new £11.5bn affordable homes programme will be delivered over five years from 2021-2026, providing up to 180,000 new homes across the country, should economic conditions allow.
The programme is set to unlock a further £38bn in public and private investment in affordable housing.
Today, the government is announcing that around half of the new homes will be available for affordable homeownership.
In order to support people from all backgrounds, the rest will be made available for discounted rent, including 10% for supported housing, to support those with physical or mental health challenges.
Nearly £7.5bn will be delivered outside London by Homes England.
Homes England will publish its affordable homes programme prospectus this week, inviting councils, housing associations and private providers to start preparing their bids.
The Greater London Authority has been offered £4bn and negotiations about what they will deliver with this funding are in progress.
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“This government is helping hard working families and prospective first-time buyers get their feet on the housing ladder in an affordable way,” said Jenrick.
“Thanks to the range of flexible ownership options being made available, more families across the country will be able to realise their dreams of owning their own home, with half of these homes being made available for ownership.”
As well as delivering homes for affordable ownership, the new programme will deliver homes for affordable and social rent.
Jenrick has also announced a new model for shared ownership which will:
reduce the minimum initial share you can buy in a property from 25% to 10%
allow people to buy additional shares in their home in 1% instalments, with heavily reduced fees
introduce a 10-year period for new shared owners where the landlord will cover the cost of any repairs and maintenance.
A right to shared ownership will be available on the vast majority of rented homes delivered through the new programme.
The housing secretary has also launched a consultation to consider how best to raise accessibility standards for all new homes in recognition of the importance of suitable homes for older and disabled people.
Mark Hayward, chief executive at NAEA Propertymark, commented: “It is particularly important that as we try to boost the economy, we build a greater supply of affordable houses that can rejuvenate those areas across the country most affected by the Covid-19 crisis.
“However, demand for housing continues to rise, so the government now needs to work to encourage people to move, continue to help people get on the property ladder, and ensure that the property market drives forward the UK’s economic recovery.”