The UK government has announced a £2 billion initiative aimed at significantly increasing the construction of social and affordable housing across England, promising the creation of up to 18,000 new homes.
Chancellor Rachel Reeves has described this move as a crucial step towards “fixing the housing crisis.” Amid escalating homelessness figures nationwide, charities are urging that the majority of these homes be designated for social rent.
Described as a “down payment from the Treasury,” this funding is part of an anticipatory gesture before a more extensive commitment to social and affordable housing expected later this year.
The government has committed to ensuring that at least half of the forthcoming 18,000 homes are allocated as social housing. However, with homelessness at an all-time high, charity groups are advocating for a significantly higher proportion of these homes to be available for social rent.
This announcement comes as part of a broader governmental pledge to construct 1.5 million new homes over the next five years.
It precedes the chancellor’s spring statement scheduled for tomorrow, which is likely to detail further cuts to various government departments following already announced reductions in welfare.
These cuts have sparked discontent among Labour backbenchers, particularly as rumours circulate that the digital services tax on major tech firms may be reduced to avoid potential American tariffs.
Last year, the New Economics Foundation highlighted the need for the construction of 90,000 social homes by the 2027/28 financial year to achieve the government’s housing targets.
By the end of this parliament, the foundation stresses that this figure needs to rise to 110,000 annually, culminating in a total of 365,000 homes designated for social rent within five years to meet the set goals.
