Thousands of affordable homes to be built - Mortgages - News - Moneyfacts

News

Thousands of affordable homes to be built

Thousands of affordable homes to be built

Category: Mortgages

Updated: 14/07/2011
First Published: 14/07/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A total of 170,000 new affordable homes could be built over the next four years, it has been announced.

The new homes will be completed under the Affordable Homes Programme.

Housing Minister Grant Shapps announced that 146 housing associations, local authorities and other providers are to build around 80,000 new properties as part of the programme.

While the majority of homes will be to rent, around 20% will be available to buy.

Amongst the new homes, around three in ten will be designed for larger families, with multiple bedrooms, while one in ten will be built in rural locations.

The scheme was originally predicted to create around 56,000 homes.

It means that, taking schemes initiated by the previous Government, 170,000 new affordable homes are on course to be built by 2015.

The programme allows social housing providers to charge a rent of up to 80% of the local market level, and use the additional income to support delivery of more affordable homes. Providers may also offer flexible tenancies to new tenants.

It is hoped that the scheme, which is part of a £4.5 billion investment into affordable housing, will provide a major boost to people on housing waiting lists, and will give a 'shot in the arm' to the construction industry.

"The Affordable Homes Programme has received a ringing endorsement from the sector and confounded the critics, who said the programme would not deliver in the current climate," said Mr Shapps.

"So I'm pleased to announce that 146 providers are in line to share almost £1.8 billion cash to develop 80,000 new homes, many of which will be larger homes for families.

"There were some who predicted doom and said very few would want to be involved in this radical new approach. Others said it would work in the south east but nowhere else.

"But we now have a wealth of strong proposals, putting us on track to deliver up to 170,000 new affordable homes across the country over the next four years."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close