Tuesday saw the press release by the Housing Secretary of a scheme for new investment in housing, including social housing for the most vulnerable. Included in this is a consultation to make all new homes more accessible for the older generation and those with disabilities.
The announcement invites bids for the governments £12.2 billion investment, which was announced in the Budget, but includes some £700 million which has already been earmarked through the 2016-2022 programme already in operation. This is an ambitious programme to build 180,000 new homes between 2021 and 2026 with the remaining £11.5 billion
Their announcement also states:
“The programme will unlock a further £38 billion in public and private investment in affordable housing. New homes will be made available from next year. Today, the government is announcing that around half of the new homes will be available for affordable home ownership, helping even more people to get a foot on the housing ladder”
£7.5 billion is destined for Homes England, which will deliver housing outside of the London area, and the GLA (Greater London Authority) has been offered the remaining £4 billion. The government have said they are in negotiation with the GLA, to see what is possible to produce with their amount, given the prices throughout London.
This programme will help provide some long awaited affordable and social rent housing. Social Rent, which is on average is 50 to 60% of the current market prices, will be funded for housing contractors across the UK, to help create affordable housing for families who need it.
Also announced, was a new model for Shared Ownership. This scheme has always been about helping people onto the property ladder by reducing the initial minimum stake that has to be provided. The announcement states, that the minimum initial share you can buy in a property will be 10%, which is reduced from 25%, and that additional shares in their homes can be bought in 1% instalments.