£2 billion extra for social and affordable housing

The Chancellor has announced £2 billion of new grant funding to deliver up to 18,000 new social and affordable homes.

The government has promised to build 1.5 million new homes.

The £2 billion investment comes as a down payment from the Treasury ahead of more long term investment in social and affordable housing planned later this year, which will provide additional funding for 2026-27 and well as for future years.

Thousands of new affordable homes will start construction by March 2027 and will complete by the end of this Parliament.

Providers are encouraged to come forward as soon as possible with projects and bids.

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 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."