The government has announced that £8.6 billion in funding will be allocated across the country to help build nearly 120,000 homes as part of the Affordable homes Programme, thousands of which will be available to first-time buyers.
The funding allocations will reportedly deliver approximately 119,000 homes, including 57,000 for ownership, 29,600 for social rent and 6,250 affordable rural homes.
Around half of the new homes from this £8.6 billion funding will be available for affordable home ownership, helping even more young people and families to get a foot on the housing ladder. This follows other government schemes to help first-time buyers into homeownership including First Homes, offering new homes at a 30% discount on the open market value, and the 95% mortgage guarantee scheme, which helps first-time buyers secure a mortgage with just a 5% deposit.
Nearly £5.2 billion of the package announced yesterday will be delivered outside London by Homes England, the government body responsible for housing delivery. The Greater London Authority (GLA) will deliver homes within London.
Nearly 90 new partnerships – including councils, housing associations and private providers – successfully bid for their share of programme funding.
Housing Secretary Robert Jenrick said:
“Creating more opportunities for home ownership is central to this government. This £9 billion funding is a landmark moment for our Affordable Homes Programme and will ensure good quality housing for all as we build back better after the pandemic.
This huge funding package will make the ambition of owning a home a reality for families by making it realistic and affordable.
We are also ensuring tens of thousands of new homes for rent are built in the years ahead, including social rent, so those on the lowest incomes can enjoy good quality, secure rented homes, built and managed by reputable providers.”