Robert Jenrick, Housing Secretary, announced today, 8 September, new investment in housing to ‘help the country build back better’, including a new Shared Ownership scheme and homes for social rent to help the most vulnerable.
Half of the new homes will be made available for ownership from 2021 and there will be a revamped Shared Ownership scheme to make it easier for people to get a foot on the property ladder. The investment will include homes for social rent to help the most vulnerable and a consultation has been launched to make all new homes more accessible for the elderly and disabled.
Funding
A new £11.5 billion Affordable Homes Programme will be delivered over five years from 2021 to 2026, providing up to 180,000 new homes across the country. The programme will unlock a further £38 billion in public and private investment in affordable housing.
Nearly £7.5 billion will be delivered outside London by Homes England. This is over £2 billion more than the amount given under the previous Affordable Homes Programme. Homes England will publish their Affordable Homes Programme prospectus this week, inviting councils, housing associations and private providers to start preparing their bids.
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.
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 home, with half of these homes being made available for ownership.
Rt Hon Robert Jenrick MP, Housing Secretary
Shared Ownership scheme
The new model will reduce the minimum initial share purchasers need to buy in a property from 25 per cent to ten per cent and will allow people to buy additional shares in one per cent instalments, with heavily reduced fees.
It will also have a ten-year period for new shared owners where the landlord will cover the cost of any repairs and maintenance.
A Right to Shared Ownership will be available on the vast majority of rented homes delivered through the new programme, providing tenants with a pathway into ownership by giving them the right to purchase a stake in their home.