A total of £8.6bn will be allocated across the country to deliver 119,000 affordable homes, including 57,000 for ownership, 29,600 for social rent and 6,250 rural homes, according to the Ministry of Housing, Communities & Local Government.
The government predicted that this cash injection could support up to 370,000 jobs across the country for homebuilders, small to medium (SME) developers, and wider businesses supporting the house building industry.
This is expected to generate up to £26bn of other private and public investment.
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Around half of the new homes from this fund will be available for affordable home ownership, which follows other government schemes to help first-time buyers into homeownership including First Homes.
The funding allocations are taken from the £11.5bn Affordable Housing Programme which will deliver up to 180,000 new affordable homes should economic conditions allow.
Nearly £5.2bn of the package will be delivered outside London by Homes England, the government body responsible for housing delivery.
The Greater London Authority (GLA) will deliver homes within London.
Almost 90 new partnerships – made up of councils, housing associations and private providers – made successful bids for their share of programme funding.
Robert Jenrick, housing secretary, said: ”Creating more opportunities for home ownership is central to this government.
“This £9bn funding is a landmark moment for our Affordable Homes Programme and will ensure good quality housing for all as we build back better after the pandemic.
“This huge funding package will make the ambition of owning a home a reality for families by making it realistic and affordable.
“We are also ensuring tens of thousands of new homes for rent are built in the years ahead, including social rent, so those on the lowest incomes can enjoy good quality, secure rented homes, built and managed by reputable providers.”
Peter Denton, chief executive of Homes England, added: “Not only does today’s announcement give our new strategic partners the funding, flexibility, and confidence they need to build much needed affordable homes across the country, it also establishes a large network of organisations looking to share their skills and capabilities to expand the affordable housing sector and transform communities.
“By forming strategic partnerships with a wide range of public and private organisations, we are creating the conditions needed for institutional investment to catalyse affordable housing supply and in future give local authorities more of the tools they need to plan and act strategically, shaping their communities and building new homes.”