{"id":106634,"date":"2022-02-28T15:30:05","date_gmt":"2022-02-28T15:30:05","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=106634"},"modified":"2022-02-28T15:30:05","modified_gmt":"2022-02-28T15:30:05","slug":"shortfall-in-affordable-homes","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/shortfall-in-affordable-homes\/106634\/","title":{"rendered":"New funding structure needed to meet shortfall in affordable homes"},"content":{"rendered":"

Research from Legal & General<\/a> and the British Property Federation<\/a> has found that a new funding structure is needed to meet the shortfall in affordable homes, as well as billions of pounds of additional funding<\/h2>\n

With 1.2 million households on waiting lists in England, an estimated 145,000 affordable homes are needed<\/a> each year to meet demand, 95,000 more than the recent annual delivery.<\/p>\n

The new research paper, named \u2018Delivering a step-change in affordable housing supply\u2019, calls upon the government to support a level playing field between housing associations and investors, to greatly scale the levels of institutional investment in affordable housing that are required to meet the deficit.<\/p>\n

The research further illustrates the importance of providing a long-term rent settlement to help significantly decrease the subsidy burden on the government.<\/p>\n

The report analysis puts the amount of additional capital funding needed to meet affordable housing demand<\/a> at \u00a334 billion per year.<\/p>\n

The pressure is on housing associations, who have driven affordable home delivery along with local authorities and central government and are near to borrowing limits and unable to raise new equity due to their not-for-profit status.<\/p>\n

Only capital injection from institutional investors alongside an increase in grant levels from the government can overcome the sector\u2019s current financial limitations.<\/p>\n

To increase affordable housing delivery to 145,000 new homes per year, the research finds that \u00a334bn of additional funding will be required each year which will need to be made up of \u00a310bn of equity from investors, the same from the debt markets and up to \u00a314bn from a government grant.<\/p>\n

The report outlines government actions to take:<\/h3>\n