Government to inject £350m in Affordable Homes Programme and Local Authority Housing Fund
The Ministry of Housing, Communities and Local Government is to inject £300m into the Affordable Homes Programme and £50m into the Local Authority Housing Fund.
The Ministry said the extra funds for the Affordable Homes Programme could see up to 2,800 extra homes built, half for social rent, while the boost to the Local Authority Housing Fund would provide more than 250 homes for those in need of better-quality temporary accommodation.
The MHCLG has also confirmed that it will crack down on “exploitative behaviour” by supported housing landlords who it says are costing the taxpayer by claiming uncapped housing benefit in return for providing unsuitable homes.
This will see it take action to implement the Supported Housing (Regulatory Oversight) Act.
Deputy Prime Minister and Housing Secretary Angela Rayner said: “For so many families, and their children, the security and safety of a home of their own remains firmly out of reach – and instead they have to live in temporary accommodation, including in B&Bs.
“This is unacceptable and is the result of the housing crisis we are facing head on. That’s why we’re driving forward on our plans to ensure a better future for everyone who needs a safe home, building on our plans to drive up living standards and build 1.5 million homes through our Plan for Change.”
Responding to the announcement, Cllr Adam Hug, housing spokesperson for the Local Government Association said: “It is positive that the Government has acted on our call to increase funding for the Affordable Homes Programme and Local Authority Housing Fund.
“We have long made the case for councils to be empowered to build more affordable, good quality homes quickly and at scale. This announcement will boost councils’ ability to build desperately needed affordable housing for local communities.”
Kate Henderson, Chief Executive of the National Housing Federation, said: “Today’s funding announcement demonstrates that the government recognises that boosting funding for new affordable homes, particularly those for social rent, is essential to meeting its ambitious housing targets and commitment to building a generation of new social homes.
“The funding announced today – in addition to the funding announced in the autumn - will help maintain momentum in the delivery of much needed social and affordable housing ahead of the new Affordable Homes Programme being announced at the Spending Review.”
Gavin Smart, Chief Executive, Chartered Institute of Housing, also welcomed the additional investment into affordable housing.
He said: “The confirmation that 50% of the additional investment in the AHP will be used to support building new homes at social rent is particularly welcome as these are the most affordable and needed. Expanding the Local Housing Fund will help local authorities respond to the huge rise in the need for temporary accommodation which has put huge pressure on council funds and made life very difficult for some of the most vulnerable. Going forward, we hope the government will use the next fiscal update to confirm sustained, long-term investment to meet the scale of demand and ensure everyone has access to a safe, secure, and affordable home.”
Smart added that the Chartered Institute of Housing also welcomed confirmation of action to implement the Supported Housing (Regulatory Oversight) Act.
“It is right that the government moves to clamp down on a small minority of exploitative supported housing landlords who are providing unacceptable poor homes to vulnerable people. We look forward to seeing more details here and to working with government, housing providers, and local authorities to ensure these commitments translate into real change on the ground.”
Harry Rodd
