The UK Government has announced up to 18,000 new social and affordable homes will be built with a £2 billion injection of investment.
It follows the government’s plans to build 1.5 million new homes and train 60,000 construction workers to tackle skills shortages.
The initial investment comes ahead of further plans on social and affordable housing due to be announced later this year.
Construction is due to begin on the properties in March 2027 with the government calling on providers to come forward “as soon as possible” with projects and bids.
Today’s investment will also unlock development and opportunity on sites that are ready in places such as Manchester or Liverpool.
The Chancellor announced plans on a visit to an affordable housing site in Stoke-On-Trent with the Deputy Prime Minister. At the conclusion of the current Spending Review process on 11 June 2025, the Government will announce further long-term investment into the sector in England.
Deputy Prime Minister and Housing Secretary Angela Rayner said:
“Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.
“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest step forward in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”
Chancellor of the Exchequer Rachel Reeves said:
“We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets”.
Kate Henderson, Chief Executive at the National Housing Federation, says:
“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness. Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.”
Charlie Nunn, CEO, Lloyds Banking Group said:
“A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes. As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.”
Image courtesy of Kirsty O’Connor/HM Treasury
