Funding worth £8.6bn has been allocated across the country as part of the Affordable Homes Programme.

The funding is aiming to deliver around 119,000 homes, including 57,000 for ownership, 29,600 for social rent and 6,250 affordable rural homes.

MHCLG is also hoping it will support up to 370,000 jobs across the country for homebuilders, SME developers, and wider businesses supporting the house building industry such as electricians and plumbers, generating “up to £26bn of other private and public investment.”

Nearly 90 new partnerships – made up of councils, housing associations and private providers – successfully bid for their share of programme funding.

Nearly £5.2bn will be delivered outside London by Homes England with the Greater London Authority delivering homes within London.

In London, Mayor Sadiq Khan is looking to use the funding to build 79,000 new homes over the next five years, with almost six in ten of the homes (16,739 homes) made available at social rent.

As well as commitment on the environment and diversity, Khan has also set out some other criteria partners must adhere to in order to access the funding. These include:

  1. The installation of sprinklers or other fire suppression systems in new blocks of flats
  2. A ban on combustible materials being used in external walls for all residential development, regardless of height
  3. Minimum floor-to-ceiling heights and a requirement for private outdoor space
  4. A ‘sunlight clause’ requiring all homes with three or more bedrooms to be dual aspect, any single aspect one- or two-bedroom homes to not be north-facing and at least one room to have direct sunlight for at least part of the day.

Housing Secretary, Robert Jenrick, said:  ”Creating more opportunities for home ownership is central to this government. This £9 billion 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.”

CEO of Homes England Peter Denton said: ”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.”

Executive Director of Public Impact at National Housing Federation, Rhys Moore said: “We welcome the announcement of the new strategic partners and are looking forward to supporting our housing association members, Homes England and the GLA to deliver the much needed affordable homes the country needs, including thousands of new homes for social rent for people on the lowest incomes.

“Importantly, this long-term certainty over funding will unlock additional opportunities which will enable housing associations to deliver even more homes.”

The Mayor of London, Sadiq Khan said: “I am delighted that we have been able to come to a deal with the Government to get started on nearly 30,000 genuinely affordable homes.

“Over the last five years I have overseen a council homes renaissance in London thanks to our relentless focus on giving boroughs the funding and expertise they need to build. I’m pleased to see this is now paying off with more than half the homes being funded at social rent levels in this deal being built by councils.

“All Londoners deserve a safe, secure home with enough space to live comfortably, and private outside space to enjoy fresh air. I want to deliver a new generation of genuinely affordable housing in London that sets the standard nationally when it comes to excellent design, safety and sustainability.

“Today’s funding is good news but I know we can still go further, faster, working with ministers, housing associations and councils to deliver more of the homes Londoners so desperately need.”

Cllr Darren Rodwell, London Councils’ Executive Member for Housing & Planning, said: “We urgently need more affordable homes in London – especially social housing.

“So it’s great news that this much-needed boost to housing delivery in the capital has been agreed. London boroughs are determined to play our part in making this happen. We want to see quality – as well as quantity – in the new homes built in our communities.

“We support this push for a new generation of affordable homes that London can be proud of.”