Successful bids for almost 62,000 homes under the first phase of the £23 billion programme have been confirmed and overall it will deliver 165,000 new affordable homes over three years from 2015.
A fifth of the homes will be built with cutting edge advanced housing manufacturing where parts are made in factories before being assembled on site. This technique is widely used on the continent, but currently only plays a limited role in British house building.
Housing Minister Brandon Lewis said the focus on new technology would provide high quality homes, and help the sector achieve the fastest rate of affordable house building for 20 years.
He explained that a total of 191 providers have been earmarked for funding and the new homes will be delivered across England, with almost a third in London. ‘House building is an essential part of this government’s long term economic plan. That’s why we have designed an ambitious new scheme to build affordable homes at the fastest rate for 20 years, which will support 165,000 jobs in construction and sustain thousands of small businesses,’ he said.
The investment from government will be combined with private finance to deliver the £23 billion programme. Lewis added that by putting in more private sector funding than previous programmes, the scheme will achieve a better deal for taxpayers.
Chief Secretary to the Treasury Danny Alexander said that building more affordable homes is an important part of ensuring every family has the opportunity to live in a decent home.
‘By investing billions into new housing and cutting out burdensome planning regulations, we are building more affordable homes per year than at any time in 20 years and are also supporting job creation across the country,’ he added.
According to Homes and Communities Agency chief executive Andy Rose described it as ‘a solid delivery programme that will ensure a smooth transition from our current affordable homes programme, and that delivery can start promptly’.
‘The allocations are closely aligned with locally identified priorities and offer value for money and increased certainty of delivery, with over 75% of the homes we are funding on firm schemes,’ he added.
Housing associations, councils and developers that have applied for funding have been required to demonstrate they are delivering new homes that are in short supply in their local area. Of the successful bids so far, 77% have been for one and two bedroom homes, so that smaller households can move to more suitably-sized accommodation.
The affordable homes programme includes affordable rented homes and affordable home ownership schemes and is being managed by the Homes and Communities Agency nationally and in London managed and allocated by Greater London Authority and the Mayor.
