-
· We
will provide £2 billion more funding for the affordable housing
programme.
-
· This
will increase the Government’s 2016-21 affordable homes programme
to £9.1 billion. This extra £2 billion will lever
in a total investment of £5 billion (public and private) in new
housing.
- · In
those areas of the country where rents are high, we will allow
bids for social rent, which are further below market rents.
- · With a
typical subsidy of £80,000, £2 billion investment can
supply around 25,000 homes available for social
rent.
- · This
compares with an additional 6,800 social rent homes
delivered in 2015-16.
- · To
help encourage more investment in social housing, we will create
a stable financial environment by setting a long-term rent deal
for councils and housing associations. This will give them the
security and certainty to invest and build more.
- · We
will encourage councils as well as housing associations to bid
for this funding so that we can deliver a new generation of
council homes in this country.
How social housing and affordable housing differ
-
· Social
housing is rented accommodation provided at below market
prices. It is provided by councils and by housing
associations. Traditional ‘council housing’ has been ‘social
rent’. Social rent is typically 30 – 40 per cent of market rents.
The rent levels are set by national government guidance.
-
· In
2010, the Coalition Government introduced a new form of low-cost
rented housing called ‘affordable rent’. This sets
rents slightly higher at up to 80 per cent of market prices. This
allows for the Government to support the construction of more new
affordable housing, at a lower level of government grant (as the
slightly higher rent allows for a higher income stream for the
social landlord, and lever in more investment).
Our record versus Labour’s record
- · We
have delivered nearly 333,000 new affordable
homes since 2010, including 240,000
affordable homes for rent. Housing starts in England in
the year to June 2017 are the highest for nine years.
-
· Between
1997 and 2010, the number of social rented homes
fell by 420,000, and waiting lists under
Labour increased from 1.0 to 1.7 million.
What we’re doing on housing more broadly
-
· 220,000
additional homes delivered across England last year (Valuation
Office Agency, Council Tax: stock of properties 2017, September
2017, link).
-
· 304,000
new homes given planning permission in the last year (DCLG: Press
release, 14 September, 2017, link)
- · Since
2010, we have delivered almost 333,000 affordable homes including
240,000 affordable homes for rent. (DCLG, News story, 24 August
2017, link)
- · Help
to Buy: Equity Loan has helped over 134,000 households buy a
new-build home. 81 per cent have been first time buyers (DCLG,
Housing Market Statistical Release, 28 September 2017, link).
- · The
number of first time buyers rose by nearly 69% between 2010 and
2016. Nearly 340,000 first time buyers took out mortgages in
2016, compared to just under 200,000 in 2010 (UK Finance mortgage
monthly lending trends data, 12 September 2017, link).
- · We
have introduced a £3 billion Home Building Fund to build more
houses. This will help build over 25,000 new homes this
Parliament and up to 200,000 in the longer term. It will provide
loans to SME builders, and fund essential infrastructure,
creating thousands of jobs in the process (DCLG, 4 October 2016,
link).
- · We
have introduced a £2.3 billion Housing Infrastructure Fund –
supporting the infrastructure needed for new homes. Local
councils and possibly other parties can bid directly for the
necessary infrastructure to support new homes in their area (HMT,
23 November 2016, link).
