The UK Government has launched the largest public housebuilding drive in decades, committing to a £39 billion (AUD $76 billion) policy package designed to construct tens of thousands of council and affordable homes across England.
Prime Minister Andy Burnham and Deputy Prime Minister Angela Rayner confirmed the first wave of funding on Tuesday, releasing nearly £10 billion (AUD $19.5 billion) to councils and housing associations to kickstart the delivery of more than 70,000 homes.
Roughly 60 per cent of the new pipeline will be dedicated to “Social Rent” – the UK equivalent of heavily subsidised public housing – to ease severe rental stress and rehouse families currently living in temporary accommodation.
The package marks a fundamental shift in British housing strategy, placing municipal councils back at the heart of residential construction after decades of market reliance.
“No child should be raised in a hostel room and no family should wait ten years for a front door of their own,”
Mr Burnham said.
“I have said from my first day in this job that everything starts with a good home. Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”
Under the initial deployment, £9.58 billion (AUD $18.7 billion) will go to 33 strategic partners outside the capital, with regional mayoral authorities taking a lead role in local planning.
In London, the Greater London Authority plans to direct at least £6 billion (AUD $11.7 billion) into local council and housing association projects.
To build local capacity, councils will also retain £1.61 billion (AUD $3.1 billion) raised from past housing sales, supported by an extra £46 million (AUD $90 million) state grant for planning and surveying staff.
Deputy Prime Minister Angela Rayner emphasised the personal stakes involved in the policy rollout.
“Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live,” she said.
“I know how important fixing this is because I’ve been there. A safe and secure home was the foundation for a better life. Getting councils building once again is fundamental to turning the housing crisis around.”
Industry peak bodies have welcomed the funding release. Kate Henderson, Chief Executive of the National Housing Federation, described the package as a major vote of confidence in not-for-profit providers, noting that housing associations have provided the certainty required to rebuild development capacity and invest in trade skills.
Homes England Chief Executive Officer Amy Rees added that continuous market engagement alongside the new National Housing Bank will unlock long-term development sites nationwide.
“By working with councils, mayors, housing associations and local partners, we can support the return of council housebuilding at scale, increase the supply of social rent homes and create thriving places that people are proud to call home.”
With more than £16 billion (AUD $31.2 billion) in reserve for future allocation rounds, the British government has guaranteed sustained public construction funding through the end of the decade.