Breaking news - Top-up package announced for Affordable Housing funding programme(s)

Additional funding has been announced in respect of the existing Affordable Homes Programme (AHP) - £300m for the delivery of up to 2,800 homes, with half for social rent - and for the Local Authority Housing Fund (LAHF) - £50m for the delivery of up to 250 new homes.

The Ministry for Housing, Communities and Local Government (MHCLG) announced the additional funding today: Thousands to benefit from the security of a safe home

This comes with the promise that thousands are set to benefit from the security of a safe and affordable or social home delivered through the additional funding which is being made available through Homes England and the Greater London Authority.  In the case of the LAHF, LAs should expect to have their allocations confirmed shortly.

The overriding and laudable objective here is solving the ongoing housing predicament, in respect of which MHCLG has said that the additional grant “supports plans to get Britain building and deliver the biggest increase in social and affordable housebuilding in a generation, turning the tide against the unacceptable housing crisis in this country. A generation have been locked out of owning their own home, while there are over 123,000 households in temporary accommodation, including nearly 160,000 children, and almost 6,000 families with children are in B&B accommodation”. 

To this end, it is envisaged that up to 2,800 extra homes will be able to be constructed with the benefit of the £300 funding injection to AHP.  Half of these new homes will have to be provided for social rent.  There is ongoing discussion as to whether the grant rates will be amended/flexed to allow for the social rented homes target to be met. 

The £50m LAHF funding is predicted will facilitate up to 250 more council homes, intended for those in need of better-quality temporary accommodation.

It is undoubtedly a welcome announcement, and which, alongside other recent announcements, ought to maintain the momentum in the delivery of additional social and affordable housing, prior to the next Spending Review in June and the publication of the new AHP.

Other forthcoming changes/announcement to watch out for include a focus on robustly addressing exploitative behaviour by those that Government regards as rogue and criminal supported housing landlords (who claim uncapped housing benefit in return for providing sub-standard housing, care and support to vulnerable persons).  The new proposals will include a new licensing scheme, more robust standards and tools to prevent/control housing benefit falling into the hands of such parties.

If you have any queries or need advice about these proposals, and how they will impact on your ongoing projects, please get in touch with Ben Halsey (Knowledge Development Lawyer), Jonathan Jarvis (Partner), or your usual Devonshires contact.