Ministers laid out plans on Monday to spend an initial £10bn from the 10-year Affordable Homes Programme on a mix of subsidised housing types in England, aligning with the Starmer government’s policy. The funding allocation arrives as officials navigate broader housing targets, contrasting with proposals from other political groups regarding social infrastructure.
Housing Programme Allocations and Regional Breakdown
Under the plans announced on Monday, £10bn will be spent helping to build 70,000 homes outside London. About 60% of these units will consist of social rented houses, while the remaining portion comprises other accommodation types such as shared ownership schemes and sheltered housing. Meanwhile, London will secure another £6bn, which officials will allocate at a later date. According to ministers, this total investment brings the government closer to its target of building 300,000 affordable homes over the next decade.
The capital outlay will be distributed through 33 strategic partners, who receive guaranteed funding for the next decade to execute their development plans. For the first time in the scheme’s history, three of those strategic partners will be local councils. This inclusion supports what Andy Burnham has described as the biggest council housebuilding programme since the postwar period.
Political Context and Prior Debates
Burnham previously called for the programme to be spent entirely on social homes, which receive heavier subsidies and offer greater affordability than other government-funded housing categories. During his campaign to become the MP for Makerfield, Burnham referenced the wider financial envelope, stating that the allocated funds should be dedicated specifically to council homes because control matters.
However, the strategy unveiled on Monday opts for a blended approach across various subsidised housing types rather than an exclusive focus on social rent. Officials note that an additional £16bn remains unallocated, and they indicate that social rent homes and council houses will receive priority in future funding rounds.
Did You Know? The Affordable Homes Programme features 33 strategic partners who are guaranteed funding over a 10-year period, with local councils participating as strategic partners for the first time in the scheme’s history.
Housing Secretary and Charity Responses
Housing Secretary Angela Rayner emphasized the personal significance of secure accommodation during the announcement. Growing up on a council estate and raising children as a young working mum, Rayner noted firsthand that access to secure, affordable housing serves as a lifeline for families across the country. She added that the investment will help get people off waiting lists and assist families in establishing permanent roots.
Charity leaders also weighed in on the updated strategy. Sarah Elliott, the chief executive of the charity Shelter, stated that the announcement puts councils back on the pitch in the fight against homelessness. Elliott asserted that providing local authorities with funding and support to deliver social homes at scale lays the foundation for a council housing revolution. However, Elliott cautioned that the government must address underlying obstacles in the upcoming autumn budget, such as unsustainable housing debt saddling local councils, to fully realize the prime minister’s vision.
Alternative Proposals and Competing Policies
The government housing framework coincides with alternative approaches introduced across the political landscape. On Monday, Reform UK released competing plans promising to boost the supply of social homes through measures including the eviction of foreign tenants and permitting housing associations to borrow more.
Frequently Asked Questions
What is the total value of the Affordable Homes Programme mentioned in the plans?
The programme features a 10-year financial envelope, which includes an initial £10bn announced for homes outside London, £6bn allocated later for London, and another £16bn that remains unallocated.
How many homes are targeted for construction outside London under the initial £10bn?
The initial £10bn will help build 70,000 homes outside London, with approximately 60% designated as social rented houses.
What role do local councils play in the newly announced funding structure?
For the first time in the history of the scheme, three local councils will act as direct strategic partners, securing guaranteed funding for the next decade to deliver housing plans.
How will future funding rounds prioritize social rent and council housing compared to the initial £10bn rollout?
Related reading