Further support for social and affordable housebuilding and next steps on supported housing
England is in the grip of an acute and entrenched housing crisis. The detrimental consequences of this disastrous state of affairs are now all-pervasive. We have a generation locked out of homeownership; 1.3 million people languishing on social housing waiting lists; millions of low-income households forced into insecure, unaffordable and far too often sub-standard private rented housing; and 160,000 homeless children living in temporary accommodation.
Among the most important causes of the housing crisis is a failure over many decades to build enough homes of all tenures to meet housing demand and housing need. That is why the Government’s plan for change includes an ambitious milestone of delivering 1.5 million safe and decent homes in this Parliament.
We are also determined to deliver the biggest increase in social and affordable housebuilding in a generation. Today, I am announcing further support for the affordable homes programme and the local authority housing fund, and outlining the steps the Government intend to take to raise standards and better regulate supported housing.
Affordable homes programme
We will set out details of new investment to succeed the 2021-26 affordable homes programme at the spending review later this year. This new investment will deliver a mix of homes for sub-market rent and homeownership, with a particular focus on delivering homes for social rent.
In October 2024, we announced £500 million in new in-year funding for the affordable homes programme. As a result of significant demand from housing providers across the country, that additional funding is already oversubscribed.
I am therefore pleased to announce that the Government are allocating a further £300 million to the affordable homes programme. This will support the near-term delivery of more social and affordable housing, delivering up to 2,800 new homes with more than half being social rent homes.
Local authority housing fund
In addition to further funding for the 2021-26 affordable homes programme, I am announcing a £50 million increase to the third round of the local authority housing fund (LAHF 3). This takes the total funding for this round of the programme to £500 million, alongside about £30 million of existing funding being reallocated.
LAHF provides funding to local authorities to help them deliver better-quality temporary accommodation and to support UK commitments to those on Afghan resettlement schemes who are fleeing persecution. The fund’s third round, which we confirmed in July 2024, has had high levels of interest from local authorities, with over 150 taking part. In total, LAHF 3 will deliver more than 2,700 homes by 2026.