The additional funding will help meet the UK Government’s ambitious housing target and have the knock-on effect of bringing down the cost of renting in the private rented sector.
The Programme sits alongside significant planning reforms that include updates to the National Planning Policy Framework, the landmark Planning and Infrastructure Bill, and the creation of a new, publicly owned National Housing Bank to drive housing delivery at scale.
A five-step renewal plan will deliver the biggest boost to grant funding in a generation, rebuild sector capacity to borrow and invest in new and existing homes, establish an effective and stable regulatory regime, reinvigorate council housebuilding, and forge a renewed partnership with the sector to build at scale.
Tackling the housing crisis
The UK Government emphasised that the Programme would help turn the tide on the entrenched housing crisis, which has left over 165,000 children living in temporary accommodation, by delivering safe, quality homes that meet modern standards. Alongside this, living standards will be raised through:
- Modernisation of the Decent Homes Standard, with updated proposals focusing on tenant safety while remaining proportionate and affordable for providers.
- Extension of the Decent Homes Standard to privately rented homes for the first time.
- Introduction of Minimum Energy Efficiency Standards in the social housing sector, ensuring homes are warm, safe, and efficient.
- Implementation of Awaab’s Law, prioritising tenant safety and accountability.
Right to Buy reforms
In tandem, wider reforms to the Right to Buy scheme have also been announced, following last year’s reduction in maximum cash discounts, to protect vital council housing stock and enable councils to ramp up new home delivery.
Major overhaul of Right to Buy Scheme
Reforms include longer tenancy requirements, reduced discounts, and new protections to improve delivery, reduce fraud, and help councils replace the homes they lose have been announced by the UK Government following a consultation period.
Funding delivery and sector certainty
The programme will be delivered primarily by Homes England, the UK Government’s housing and regeneration agency, with up to 30% of funding (£11.7 billion) allocated to the Greater London Authority to support housing delivery in the capital.
Unlike previous programmes, this long-term plan is designed to provide certainty for developers, replacing the five-year £12.3 billion Affordable Homes Programme that ran from 2021 to 2026. The current plan nearly doubles annual investment, reaching £4 billion per year by 2029/30.
