The Labour Party has committed an additional £500 million to the Affordable Homes Programme, which provides grant funding to developers.
This will bring the annual budget to £3.1 billion in 2025-26, and should support the creation of 5,000 additional homes.
Ella Pearson, head of new homes at Fisher German, said: “The increased investment in affordable homes promised by the Chancellor – significantly more than what was expected – is positive news for small to medium-sized new-build developers which typically have fewer affordable homes on site. The hope is that this will increase the appetite of housing providers as their risk is reduced.
“This will ultimately mean that more affordable homes will come onto the market, giving more people the chance to get on the property ladder.”
Breaking down the £3.1 billion, £3bn will be spent on increasing the supply of new homes and supporting small housebuilders, with £128 million going to new housing projects, including tackling river pollution.
Reeves also pledged £1bn to accelerate the removal of dangerous cladding on homes, after the Grenfell Tower report.
