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Government’s £350m investment set to provide thousands of new homes – MHCLG

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Thousands could benefit from a £350m investment to improve housing in Britain, according to the Ministry of Housing, Communities and Local Government (MHCLG).

The funding aims to build high-quality homes and address issues with rogue landlords in supported housing.

Up to 2,800 additional homes will be constructed through a £300m boost to the Affordable Homes Programme, with half of these designated for social rent.

Furthermore, an extra £50m will produce over 250 more council homes to support families needing better-quality temporary accommodation. 

This funding is part of the Government’s broader effort to combat the ongoing housing crisis, where over 123,000 households live in temporary accommodation, including nearly 160,000 children and almost 6,000 families in bed and breakfast accommodations (B&Bs). 

Deputy Prime Minister Angela Rayner said: “For so many families, and their children, the security and safety of a home of their own remains firmly out of reach – and instead they have to live in temporary accommodation, including in B&Bs.

“This is unacceptable and is the result of the housing crisis we are facing head on.

“That’s why we’re driving forward on our plans to ensure a better future for everyone who needs a safe home, building on our plans to drive up living standards and build 1.5 million homes through our Plan for Change.”

Kate Henderson, chief executive of the National Housing Federation, said: “Today’s funding announcement demonstrates that the government recognises that boosting funding for new affordable homes, particularly those for social rent, is essential to meeting its ambitious housing targets and commitment to building a generation of new social homes.

“Housing associations share the government’s housing ambitions and we welcome this top-up to the Affordable Homes Programme.”

Henderson added: “The funding announced today – in addition to the funding announced in the autumn – will help maintain momentum in the delivery of much needed social and affordable housing ahead of the new Affordable Homes Programme being announced at the Spending Review.

“Housing associations are facing a number of financial challenges due to decades of funding cuts.

“Alongside this vital funding injection, we hope to see a package of supportive measures at the upcoming Spending Review to enable the sector to build the homes our country needs.”

Gavin Smart, chief executive of the Chartered Institute of Housing, said: “The housing crisis is one of the biggest challenges facing the country, and we know that increasing the supply of truly affordable homes is key to tackling homelessness, easing pressure on local authorities, and driving economic growth.

“This additional investment into affordable housing is therefore very welcome and will help support the delivery of much-needed affordable homes ahead of a new Affordable Homes Programme (AHP) at the forthcoming Spending Review.

Smart added: “The confirmation that 50% of the additional investment in the AHP will be used to support building new homes at social rent is particularly welcome as these are the most affordable and needed.

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“Expanding the Local Housing Fund will help local authorities respond to the huge rise in the need for temporary accommodation which has put huge pressure on council funds and made life very difficult for some of the most vulnerable.

“Going forward, we hope the government will use the next fiscal update to confirm sustained, long-term investment to meet the scale of demand and ensure everyone has access to a safe, secure, and affordable home.”

He said: “We also welcome confirmation of action to implement the Supported Housing (Regulatory Oversight) Act.

“It is right that the government moves to clamp down on a small minority of exploitative supported housing landlords who are providing unacceptable poor homes to vulnerable people.

“We look forward to seeing more details here and to working with government, housing providers, and local authorities to ensure these commitments translate into real change on the ground.”

This initiative follows a £500m investment for up to 5,000 affordable homes.

Overall, the original £11.5bn funding is expected to generate around 130,000 homes by 2026.

In addition, £450m has been provided to 150 councils to help with homelessness services and reduce the reliance on unsuitable accommodations.

The investment will focus on a mix of tenures, with a specific emphasis on social rent.

Alongside the £50m increase to the Local Authority Housing Fund, about £30m is being reallocated from previous funding rounds.

Councils will be informed about funding allocations in the coming days.

The Government plans to tackle exploitative behaviour by rogue supported housing landlords, who have been claiming uncapped housing benefits while providing inadequate housing for vulnerable people.

New licensing schemes and tougher standards will be implemented to address issues highlighted, including instances of vulnerable individuals housed in poor conditions.

These changes are part of the government’s efforts to ensure everyone has access to safe, secure, and affordable housing.

The government has also launched initiatives to boost homebuilding, including a New Homes Accelerator and a New Towns Taskforce to develop communities with new homes.

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