Twenty thousand new affordable homes will be built across the country, helping more people realise the dream of owning their own home, thanks to a £3 billion increase in a Government-backed loan fund opening.
The expansion of the Affordable Homes Scheme, which provides low-cost loans to housing providers, will support thousands of new homes. For the first time, the scheme can also be used to upgrade existing properties, making them warm and decent for tenants.
Providers will be able to apply for loans to carry out vital building safety works, such as the removal of dangerous cladding.
Backed by the Department for Levelling Up, Housing and Communities, the now £6 billion fund will help housing providers access low-cost loans so they can expand their business, build more affordable homes and upgrade their existing stock.
Housing Minister Lee Rowley said: “We know getting cost-effective loans can be a stumbling block for many developers building more affordable homes or upgrading their existing stock, so it is of the quality tenants deserve.
“This new round opening today will not only improve the lives of those already living in homes, but help thousands of families benefit from new, high-quality, affordable housing.”
Launched in 2020, the scheme, delivered by ARA Venn, is already helping 12 providers to deliver 6,290 new homes, with thousands more to be built in the coming years.
Among the beneficiaries of the scheme is Watford Community Housing. They first accessed the scheme back in November 2021 and it helped them build 200 new homes, including the firm’s first modular development.
As part of a second funding application made in December, they are set to build a further 100 affordable homes.
The says it is Government is making good progress and is on track to meet its manifesto commitment to build 1 million homes this Parliament and the target to deliver 300,000 homes a year remains. This work is being supported by £10 billion investment to boost housing supply since the start of this Parliament.
This is alongside the £11.5 billion affordable homes programme, which will unlock £38 billion in additional private investment.
