Pressure on landlords to provide homes for those who would normally rent within the affordable and social housing sectors will lift soon following today’s Spending Review.
Chancellor Rachel Reeves announced in parliament today that the Government will fund £39 billion more to drive a huge increase in the number of affordable homes across the country, including those to rent.
Reeves said it was the “greatest cash injection in affordable and social housing in fifty years”.
The key thrust of this is a new Affordable Homes Programme which will be direct Government financial support for house building and in particular homes available via social rent.
Her comments follow long-standing calls for a big increase in affordable and social rent house building from many quarters including both lobbying organisations such as Shelter and Generation Rent, but also Propertymark and the National Residential Landlords Association, in recent times.
All have highlighted how the ongoing imbalance between demand and supply in the private rented sector has been created to a by tenants who would normally live in social and affordable housing being forced to seek homes from private landlords and letting agents.
The first towns where the initial developments to benefit from the new Affordable Homes Programme will be are Blackpool, Preston, Sheffield and Swindon.
HM Treasury said: “This significant settlement represents the first time in living memory that the government has set out a programme that provides ten years of certainty – giving the sector the confidence to deliver for now and for the future of housing in Britain and turning the tide on the housing crisis in this country”.
Ben Beadle, Chief Executive of the National Residential Landlords Association
“Today’s spending review does nothing to tackle the immediate pressures in the private rented market," he says.
“It does nothing to support the delivery of the one million new private rented homes needed by 2031 to meet growing demand and it does nothing to support and encourage investments in energy efficiency works to rental properties.
“And it does nothing to support all those renters struggling to find a home as a result of the Government’s freeze on housing benefit rates.”
Alex Slater, Rightmove's housebuilding expert
"Today's news is a really positive boost for the housebuilding industry and a step in the right direction," he says.
“There aren't enough affordable homes, so we welcome any initiatives that will help the sector to deliver more of these homes to market.
“What will be key is making sure more affordable homes are delivered in the right places, where the gap in supply and demand is greatest. Hopefully this is one of many steps to come to support the delivery of much needed homes across the country."
William Reeve, CEO of Goodlord
"This £40bn commitment could not come a moment too soon. The myriad pressures on the housing market - from rising rents and retreating landlords, to crumbling social properties and escalating numbers living in temporary accommodation - all of it stems back to a historic failure to ensure our housing stock keeps up with population growth," he says.
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