Helping hard working families get safe and secure homes and kickstarting economic growth are driving the Government’s agenda, as the Chancellor and Deputy Prime Minister today (Tuesday 25 March) announced up to 18,000 new social and affordable homes will be built with a £2 billion injection of investment to deliver the Prime Minister’s Plan for Change.
The announcement hails a significant milestone on the Government’s promise to build 1.5 million new homes whilst driving economic growth by getting Britain building again. It follows the Government’s plan to inspire the next generation of British engineers, brickies and chippies, by training 60,000 construction workers to tackle skills shortages and get more young people into jobs.
The £2 billion investment boost comes as a down payment from the Treasury ahead of more long-term investment in social and affordable housing planned later this year, as the government tackles the housing crisis that has held working families back from the stability and security that comes with a safe roof over your head. Thousands of new affordable homes will start construction by March 2027 and will complete by the end of this Parliament.
The Government is encouraging providers to come forwards as soon as possible with projects and bids to ramp up the delivery of new housing supply, in turn making the dream of home ownership a reality for more people across the country. Today’s investment will also unlock development and opportunity on sites that are ready and waiting for spades in the ground in places such as Manchester or Liverpool.
The Chancellor announced plans on a visit to an affordable housing site in Stoke-On-Trent with the Deputy Prime Minister, working hand in hand to deliver the biggest boost to affordable and social housing in a generation. Deputy Prime Minister and Housing Secretary Angela Rayner said: “Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.
“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest step forward in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”
Chancellor of the Exchequer Rachel Reeves said: “We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation.
“Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people's pockets”. At the conclusion of the current Spending Review process on 11 June 2025, the Government will announce further long-term investment into the sector in England, delivering the biggest boost to social and affordable housing in a generation.
Kate Henderson, Chief Executive at the National Housing Federation, says: "This funding top-up is hugely welcome and demonstrates the government’s commitment to delivering genuinely affordable, social housing for families in need across the country.
“The additional £2bn will prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced. Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness.
“Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.”
Charlie Nunn, CEO, Lloyds Banking Group said: “A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes.
“As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.” David Thomas, CEO at Barratt Redrow, said: “To increase construction activity and build the homes the UK desperately needs, we need support for demand across all tenures.
“As well as providing more much-needed affordable homes, this welcome investment will help unlock mixed-tenure developments and to create jobs and economic growth across the country.”
