{"id":152158,"date":"2025-06-11T09:55:50","date_gmt":"2025-06-11T08:55:50","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=152158"},"modified":"2025-06-11T09:55:50","modified_gmt":"2025-06-11T08:55:50","slug":"rachel-reeves-announce-affordable-housing-boost-spending-review","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/rachel-reeves-announce-affordable-housing-boost-spending-review\/152158\/","title":{"rendered":"Rachel Reeves to announce affordable housing boost in spending review"},"content":{"rendered":"

Nearly \u00a340bn will be allocated to local authorities, private developers, and housing associations<\/h2>\n

Today will see the long-awaited spending review<\/a> in which the chancellor will lay out government spending to 2029.<\/p>\n

It has been confirmed that an affordable housing boost is incoming, along with the allowance for social landlords to raise rent by one percentage point above inflation.<\/p>\n

A total increase of \u00a3113bn in capital spending<\/h3>\n

In October last year, changes were made to the government\u2019s debt rules and changes were made to the fiscal rules earlier this year.<\/p>\n

Rachel Reeves is expected to say: \u201cThis government is renewing Britain, but I know too many people in too many parts of the country are yet to feel it.<\/p>\n

\u201cThis government\u2019s task \u2013 my task \u2013 and the purpose of this spending review is to change that. To ensure that renewal is felt in people\u2019s everyday lives, their jobs, their communities.\u201d<\/p>\n

This affordable housing boost is expected to be a big contributor to reaching the 1.5m new homes target, with the allowance being boosted from \u00a311.8bn to \u00a339bn.<\/p>\n

This will also help housing associations to buy currently abandoned private houses.<\/p>\n

A welcome move in the industry<\/h3>\n

On Monday, a letter was sent to Matthew Pennycook MP, calling for more development of the Affordable Homes Programme.\u00a0<\/a><\/p>\n

The letter calls for more measures to be taken in the programme, including long term rent settlements.<\/p>\n

The signatories of this letter, including BusinessLDN, Landsec, and Metropolitan Thames Valley Housing, will likely be pleased with the upcoming announcement of increasing the cap on social rents and allowing opportunities both for rents to catch up to higher rents, but also fund improvements to existing housing stock and deliver new homes.<\/p>\n

Just two months ago, another affordable housing boost was announced in a \u00a32bn cash<\/a> injection under the Plan for Change, covering up to 18,000 new homes.<\/p>\n

At the time, chancellor of the exchequer, Rachel Reeves, said: \u201cWe are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today\u2019s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people\u2019s pockets.\u201d<\/p>\n

Deputy prime minister and housing secretary, Angela Rayner, said: \u201cEveryone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance\u00a0to rent a home they can afford thanks to the housing crisis we\u2019ve inherited.<\/p>\n

\u201cThis investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5m homes, and the biggest increase in social and affordable housing in a generation.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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