Angela Rayner calls for ‘council house revolution’ to fix crisis
The government’s £11.5bn affordable homes programme (AHP) may deliver as few as 110,000 homes, senior officials in the Ministry for Housing, Communities and Local Government have confirmed.
The scheme was launched in 2020 and was originally expected to deliver 180,000 homes through Homes England and the Greater London Authority, but this target has been repeatedly downgraded.
In September 2022, the National Audit Office said it expected completions to be 23,000 homes lower (157,000) and earlier this year Homes England itself admitted that the real figure would be “some way” lower than this.
Now, on the day the government launches its plans to reform the National Planning Policy Framework, senior civil servants have revealed the latest projections are for between 110,000 and 130,000.
Housing Today understands that Homes England’s share of that target is between 89,000 and 106,000.
In January, Homes England chief Peter Denton told MPs that numbers in the programme would have to fall because of the decision to raise the grant rate in face of adverse market conditions, and to build more social rented homes.
Presenting her revised NPPF to MPs this afternoon, housing secretary Angela Rayner called on local authorities, housing associations and industry to work with her to deliver a “council house revolution”.
The new Labour government is introducing a range of measures intended to boost affordable housing delivery, including greater flexibilities in the AHP for the Greater London Authority to unlock delivery in the capital.
The government will also increase the flexibility of how councils can use Right to Buy Receipts, including removing the caps on the percentage of replacements delivered as acquisitions and the percentage cost of a replacement home that can be funded using these receipts.
>> Read more: ‘Good, but not perfect’ – What next for Homes England?
It will also give councils the ability to combine Right to Buy receipts with section 106 contributions, with these flexibilities in place for an initial 2 years and subject to review.
Rayner also committed to a wider review of Right to Buy in the autumn, including the eligibility criteria and protections for new homes, with a consultation to be brought forward in the autumn.
Housing minister Matthew Pennycook is set to meet with housebuilders to work out how they can match their ambition for affordable homes.
Rayner revealed that the chancellor, Rachel Reeves, will set out plans to provide rent stability for housing associations at the next budget.
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