Housing Secretary Robert Jenrick has announced an £11.5bn Affordable Homes programme that will be delivered over five years from 2021, providing up to 180,000 new homes across the country.
The programme aims to unlock a further £38bn in public and private investment in affordable housing.
Half of the homes will be available for affordable home ownership, with the new properties to be accessible from 2021.
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The rest of the properties will be made available for discounted rent, including 10% for supported housing.
£7.5bn of the investment will be delivered outside London by Homes England, with the Greater London Authority has been offered £4bn.
The Housing Secretary also announced changes to the shared ownership scheme.
The amendments include reducing the minimum initial share available to buy in a property from 25% to 10%, and allowing people to buy additional shares in their home in 1% instalments, with heavily reduced fees.
The government will also be introducing a 10-year period for new-shared owners where the landlord will cover the cost of any repairs and maintenance.
Housing Secretary Robert Jenrick said: “Today’s announcement represents the highest single funding commitment to affordable housing in a decade and is part of our comprehensive plans to build back better.
“This government is helping hard-working families and prospective first-time buyers get their feet on the housing ladder in an affordable way.
“Thanks to the range of flexible ownership options being made available, more families across the country will be able to realise their dreams of owning their own.”
Nick Walkley, chief executive of Homes England, said: “We welcome the launch of the new Affordable Homes fund, which gives Homes England a unique opportunity to work on behalf of the government to accelerate the delivery of high-quality, affordable homes.
“The fund will support improved productivity in construction and unlock new economic opportunities across the country.
“Despite the challenges of COVID-19, this long-term funding settlement gives our partners the confidence they need to invest in new homes and the communities they work for.”
Mark Hayward, chief executive at NAEA Propertymark, said: “It’s positive to see the government continue to invest in housing during this period.
“It is particularly important that as we try to boost the economy, we build a greater supply of affordable houses that can rejuvenate those areas across the country most affected by the COVID-19 crisis.
“However, demand for housing continues to rise so the government now needs to work to encourage people to move, continue to help people get on the property ladder and ensure that the property market drives forward the UK’s economic recovery.”