The Government has announced a £2 billion investment to help support the creation of up to 18,000 new social and affordable homes
This investment marks the most significant boost in social housing in a generation, will address the ongoing housing crisis, and will provide families with safe and secure homes.
Building 1.5 million new homes
As part of the Government’s “plan for change,” it aims to build 1.5 million new homes over the coming years to excel in economic growth and improve housing accessibility.
The £2 billion investment will focus on projects that can be completed within the current parliamentary term, with construction expected to start as early as March 2027 and finish by June 2029. Key areas targeted for development include cities like Manchester and Liverpool, with an urgent demand for affordable housing. This funding injection is essential in accelerating housing delivery in high-demand areas, providing a much-needed solution to the housing shortage.
Building homes and creating jobs
The Government’s emphasis on building homes quickly, especially in areas with ready-to-develop sites, is key to addressing the immediate needs of families struggling to find affordable housing.
The plan promises to deliver new homes, create jobs, and boost the economy by stimulating the construction sector. This investment is designed to support the housing market’s growth while ensuring that the homes built are affordable and secure, particularly for those on low and moderate incomes.
More long-term investments in social and affordable housing will be announced later in the year as part of a wider plan to tackle the housing crisis in the UK.
The Treasury plans to allocate more funds for 2026-27 and the following years, ensuring continued support is available for the construction of affordable housing.
The long-term aim is to provide greater stability for working families by ensuring they can afford homes, whether they wish to buy or rent.
Providing construction work: Affordable homes
The Government has also specifically emphasised training 60,000 construction workers through this funding. This will help address the skill shortage in the sector, ensuring enough workers meet the demand for the new homes.
By investing in training and development, the Government is supporting the housing market and creating opportunities for young people to enter the workforce, helping to build a stronger and more sustainable economy.
Addressing the UK’s housing crisis
The Government’s new investment has been praised by various stakeholders, including housing organisations and industry leaders, who see the £2 billion investment as an essential step towards addressing the UK’s housing crisis.
Housing associations have expressed their support for the funding, highlighting the importance of social housing in providing secure and affordable living spaces for families. Social housing, they argue, is critical in preventing homelessness and reducing poverty, as well as offering long-term financial savings for the Government by reducing expenditure on benefits and healthcare.
The investment is also expected to drive economic growth by creating new jobs and stimulating construction activity across the country. The UK’s biggest commercial supporters of social housing, such as Lloyds Banking Group and Barratt Redrow, have endorsed the funding, recognising its potential to create mixed-tenure developments and unlock opportunities for economic growth in regions that need it most.
