The UK government has announced the initial allocations from a fund intended to construct more than 70,000 homes across England, with 60% earmarked for social rent. This move is part of a broader 10-year program with over £16 billion remaining to be distributed outside London.
More than £2 billion of the first funding allocations are designated for mayoral areas, aligning with the government's devolution agenda. Mayoral strategic authorities will guide investment based on local priorities. The Greater London Authority also plans to contribute at least £6 billion, with London councils expected to build over half of the capital's planned homes.
A breakdown of planned activity shows significant investment in various regions. Greater Manchester is set to receive £529 million for 4,400 homes, while the West Midlands will get £409 million for 3,200 homes. The North East has been allocated £445 million for 3,400 homes, and West Yorkshire will receive £441 million for 4,000 homes. Liverpool City Region is slated for 3,100 homes with £380 million, and South Yorkshire has been allocated £249 million for 2,200 homes.
Housing Secretary Angela Rayner emphasized the importance of secure housing, stating, "Families can't be left raising children without a place to call home and none of us should spend years waiting for somewhere safe and affordable to live." She added that the government is committed to enabling councils to build more homes, which is fundamental to addressing the housing crisis and moving families out of temporary accommodation.
However, the current allocations have drawn criticism, with some questioning whether the government is fully adhering to an earlier pledge to dedicate the entire £39 billion social and affordable homes program to council homes. During his campaign, Andy Burnham suggested the full £39 billion should be exclusively for council homes. Critics also point out that a significant portion of the funding is backloaded to fall outside the current spending review and this parliamentary term.
Housing minister Matthew Pennycook defended the government's approach, stating that the current funding wave aligns with the commitment to increase spending on social rent and council house building. He asserted, "Andy Burnham said in the by-election that he wanted to see more money spent on social rent on council house building. That's exactly what we're doing through this initial wave of funding."
Nearly £10 billion of the total fund is set to go to councils and housing associations for building affordable homes, with a majority intended for social rent. Rayner also highlighted that councils previously built the country out of a housing crisis and can do so again with proper backing and trust.
In contrast, Shadow housing secretary Sir James Cleverly described the plan as a "sleight of hand under Labour, and yet another unfunded spending commitment," noting that some homes are not scheduled for delivery until 2039.