Housing providers in the UK can apply for a share of a £7bn fund to help increase the supply of affordable homes in England, the government has announced.
Since the 5th January 2017, housing associations, local authorities & private developers in England can bid for funding to build thousands of new rent-to-buy, shared ownership & affordable rented homes in what is described as a “dramatic expansion” of its housing programme.
£1.4bn is available for housing associations and councils to be used to fund work on 40,000 additional affordable homes by 2021. The £4.7bn of cash available between now and 2021 would help deliver at least 135,000 shared ownership homes, 10,000 rent-to-buy properties & 8,000 homes for supported living and older people to rent.
Under rent to buy, rents will be set at or below 80% of the local market rent for a set period in order to give tenants the opportunity to save for a deposit and then the option to buy their home.
Sajid Javid from the communities secretary said: “Our newly expanded affordable housing programme, turbo-charged by a multibillion-pound investment, will allow housing associations to build more homes in places where they are most needed, particularly for families who are just about managing.”
“By encouraging the delivery of more homes under a variety of tenures, we can create a housing market which truly works for everyone, meeting the diverse housing needs of this country.”