UK government pledges another GBP350 million for affordable homes

(Alliance News) - Ministers in the UK have pledged another GBP350 million to help build ...

Alliance News 12 February, 2025 | 6:42AM
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(Alliance News) - Ministers in the UK have pledged another GBP350 million to help build affordable and social rent homes, as Angela Rayner has said that the government "can't afford not to" hit their 1.5 million housebuilding target.

Officials have said that up to 2,800 extra homes will be built with an extra GBP300 million for the affordable homes programme committed on Wednesday, half of which will be social rent.

GBP50 million will also be given to the local authority housing fund, with the expectation that this will produce "over 250" more council homes.

The government has pledged to build 1.5 million homes over the course of the Parliament, but there have been warnings that there are not the staff available to fulfil the promise.

Asked whether she was worried about the target being met, Deputy Prime Minister & Housing Secretary Rayner said that she is "determined" to meet the challenge.

"We will meet that target because we can't afford not to," Rayner told broadcasters.

"We have 1.3 million people waiting on housing waiting lists, there isn't a person listening to this show that will not know somebody who is desperate to get on the housing ladder.

"So, therefore, we're determined to turn that tide."

Pointing to changes the government has made on planning policy as well as mandatory housebuilding targets, Rayner later added: "I'm determined to meet that challenge."

A report from the charity Shelter last summer suggested that England needed at least 90,000 social rent homes built per year for 10 years to clear social housing waiting lists and house people who are homeless.

Asked whether the 250 increase of council homes predicted with Wednesday's funding was a big increase, Rayner said: "We think the measures we're taking will unlock thousands more council and social homes as part of that programme. We want to help councils who want to build those homes.

"We see 160,000 children in temporary accommodation, and the cost of that on local authorities is significant, as well as the impact on children's life chances. So we need to build the homes, and we're doing everything we can to turn the tide of decline and build the houses that people desperately need."

According to Shelter's website, social rent is set by a formula tied to local income, historically around 50% of the market rate.

The money comes on top of GBP500 million that was earmarked for affordable housing in October's budget.

It is thought that ministers will also shortly announce a crackdown on rogue landlords in the supported housing sector who provide unsuitable homes.

In December, the head of the largest housebuilding firm in the UK warned that a skills shortage means that Labour's 1.5 million goal is not possible.

Asked if there were enough workers to build the extra homes promised, Barratt Redrow PLC Chief Executive David Thomas told the BBC: "The short answer is no."

He added that Starmer's government would have to "revolutionise the market, revolutionise planning, revolutionise methods of production" to make reaching their homebuilding target achievable.

"They're challenging targets, I think we have to recognise that this is a national crisis," Thomas said.

Earlier this week Rayner and Keir Starmer joined the King on a rare joint engagement to see a housing project when he took the politicians on a visit to a Cornish development he inspired.

Downing Street denied dragging the King into politics, and Starmer is said to have expressed an interest in seeing the development in person, with Charles offering to show him around, an invitation accepted by the prime minister and his deputy.

By Caitlin Doherty, Deputy Political Editor

Press Association: News

source: PA

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