The Chancellor and Deputy Prime Minister have announced a £2 billion investment to build up to 18,000 new social and affordable homes, as part of the Prime Minister’s Plan for Change.
This significant milestone aims to create 1.5 million new homes and drive economic growth by getting Britain building again.
Key Highlights of the initiative include:
- Investment Boost: The £2 billion investment is a down payment from the Treasury, with additional funding planned for 2026-27 and future years.
- Construction Timeline: Thousands of new affordable homes will start construction by March 2027 and complete by the end of this Parliament.
- Encouraging Providers: The government is urging providers to submit projects and bids to ramp up housing supply.
- Unlocking Development: The investment will unlock development opportunities in areas like Manchester and Liverpool.
Angela Rayner, Deputy Prime Minister, commented:
“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 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.”
The announcement follows the government’s plan to train 60,000 construction workers to tackle skills shortages and get more young people into jobs. This initiative is part of a broader effort to address the housing crisis and provide stability and security for working families.
Chancellor Rachel Reeves added:
“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 social and affordable housing sector in England.
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