Prime Minister Andy Burnham's plans to accelerate social housing delivery may face challenges in matching his earlier ambitions, following the government's confirmation of how the first £10bn of funding will be allocated. This initial funding, part of the 10-year Affordable Homes Programme, is designated for 70,000 affordable homes outside London.
Around 60% of these homes are planned for social rent, with the remaining proportion covering shared ownership and sheltered housing. This allocation represents a shift from Burnham's previous position, where he had called for the programme's entire £39bn budget to be dedicated to council housing.
The government states that the programme will contribute to its target of delivering 300,000 affordable homes over the next decade. The initial funding will be distributed through 33 strategic partners, with funding commitments spanning the next 10 years. Three local councils will directly participate in the programme for the first time.
The New Economics Foundation (NEF) has stated that the Prime Minister's social housing plans may struggle to meet his ambition. Molly Harris, a senior researcher at NEF, noted that without a greater funding commitment and with councils making up only one-tenth of delivery partners, the Prime Minister may struggle to fulfil his pledge for the largest post-war council housebuilding programme. Blick Rothenberg, an audit, tax, and business advisory firm, also commented that grants alone do not build houses, raising questions about planning, infrastructure, construction capacity, and development viability.