Bidding opens for £1.4bn of new grant with another £1.3bn of existing funding available outside London, but ‘majority of expenditure’ to support home ownership products.
Housing minister Gavin Barwell has said providers will get total flexibility in their bids for grant funding - but veered away from support for social rent by stressing that government will be looking to maximise the supply it gets for its money.
A revised affordable homes programme will provide an extra £1.4bn of funding that can be used for a range of housing types including affordable rent, shared ownership and rent to buy, it was announced today.
Housing associations and private builders are being invited to bid for £4.7bn of grant funding in what marks a ‘decisive shift’ by government towards support for home ownership.
• Capital grants for social and affordable rent forecasts fall from £960m to £130m by 2020/21, as money diverted to part/full ownership schemes• Spending review supports new build recovery to 185,000, but 34,000 lower than forecast in absence of both July and November 2015 measures• HA annual net borrowing to fall from £4.6bn to £1.6bn by 2020/21
Funding that has not been allocated under the current Affordable Homes Programme (AHP) will be prioritised for shared ownership homes, it has emerged.
Housing benefit in the housing association sector will be capped at the relevant local housing allowance (LHA) rate for new tenants ‘to help prevent social landlords from charging inflated rent for their properties’, the government said today.
Chancellor George Osborne is set to announce a £6.9bn housing investment plan during today’s spending review, with the focus almost entirely on home ownership, it has been reported.
Government is planning to use the Affordable Homes Programme to support its ‘flagship’ starter homes initiative, with more details on the plans expected at next week’s Spending Review.