The British government has announced the first £10 billion phase of a long-term housing programme aimed at increasing the supply of affordable homes, with a major focus on London
The funding is expected to support the construction of more than 70,000 new homes, with about 60% earmarked for social rent a subsidised form of housing provided mainly by local councils and housing associations.
More than £7 billion from the first phase will go to London, where local authorities are expected to deliver more than half of the new homes.
The funding is the first tranche of a previously announced £39 billion housing programme spread over 10 years.
The government said more than £16 billion of the overall funding package would eventually be allocated outside London, with priority given to social-rent homes and council housebuilding.
The programme is a key part of Prime Minister Andy Burnham’s plan to tackle Britain’s housing shortage, reduce homelessness and lessen the amount of public money spent on housing people in privately rented accommodation.
“Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again,” Burnham said in a statement announcing details of the first funding wave.
However, Housing Minister Matthew Pennycook said local councils currently lacked the capacity to take on the entire programme.
The government’s decision to allocate about 60% of the homes to social rent is in line with the proportion set under the housing programme created by former Prime Minister Keir Starmer.
It falls short of Burnham’s earlier pledge that all homes under the programme would be delivered through local councils.
Burnham, who became prime minister in July, has argued that giving councils a bigger role in housebuilding could help Britain address its housing crisis in a way similar to the large-scale council housing programmes introduced after World War Two.
The government also said the housing programme would support Burnham’s devolution agenda by giving mayoral authorities greater powers to determine housing priorities in their areas.
The first phase is expected to provide thousands of new homes while putting local authorities at the centre of efforts to expand affordable housing.
The government hopes the programme will provide more secure and affordable housing for lower-income households while reducing pressure on the welfare system.
The announcement comes as housing affordability remains a major concern in Britain, particularly in London, where high rents and property prices have made it increasingly difficult for many households to secure affordable accommodation.
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