The government’s affordable housing programme has unlocked £7Bn worth of funding the Communities Secretary Sajid Javid has announced.
The scheme set up to tackle the diverse housing demands across the country has received what the government described as a “dramatic expansion”.
Housing providers will be able to apply for a share of the fund, which is made of previous financial announcements including an extra £1.4Bn at the Autumn Statement last November.
The government said that in addition to this extra funding, the existing affordable homes programme is being expanded to provide a broader number of ways to help people into getting on the property ladder and offer support for those people in need of affordable housing.
By increasing the range of tenures available including affordable Rent, Shared Ownership and Rent to Buy, it is envisaged that the programme will be able to help a wider range of people with disparate circumstances.
This includes homes for Rent to Buy which will be let with rents set at or below 80% of the local market rent for a set time period, giving tenants the opportunity to save for a deposit and then the option to buy their current home.
The programme is ultimately expected to deliver over 200,000 homes as housing providers will be given more flexibility to respond to local needs and markets. They will be encouraged to create a better mix of of homes for both affordable rent and low-cost ownership.
Communities Secretary Sajid Javid said: “This government is committed to increasing housing supply and halting the decline in affordability.
“Our newly expanded affordable housing programme, turbo-charged by a multi-billion 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.”
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