Extra £350m top-up for Affordable Homes Programme and temporary housing

The latest AHP top-up follows a £500m boost announced in October, which is expected to provide 5,000 more affordable homes.

The existing AHP runs from 2021-26 and was originally set by the previous Conservative government. It is expected to deliver 130,000 homes by 2026.

Labour has promised a new multi-year AHP that will replace the existing scheme, but details are tied to the government’s Spending Review, which sets spending limits for each department. The Spending Review was set to take place in March, but was later pushed to June.

Alongside the £50m increase to the LAHF, approximately £30m of funding is being reallocated from previous rounds, taking the number of houses that will be delivered by the third round to more than 2,700 homes.

Councils that have submitted applications will be contacted in the following few days to inform them of the funding allocations.

Alongside the extra funding, MHCLG said it would set out changes “imminently” to crack down on “exploitative behaviour” by rogue and criminal supported housing landlords, which are costing the taxpayer by claiming uncapped housing benefit in return for providing “squalid homes for the most vulnerable”.

A new licensing scheme, tougher standards and the ability to stop housing benefit going to rogue landlords are all part of the plan, which is to be unveiled next week.

The supported housing reforms implement measures in the Supported Housing (Regulatory Oversight) Act 2023.

Angela Rayner, deputy prime minister and housing secretary, said: “For so many families and their children, the security and safety of a home of their own remains firmly out of reach – and instead they have to live in temporary accommodation, including in B&Bs.

“This is unacceptable and is the result of the housing crisis we are facing head on. That’s why we’re driving forward on our plans to ensure a better future for everyone who needs a safe home, building on our plans to drive up living standards and build 1.5 million homes through our Plan for Change.”

Gavin Smart, chief executive of the Chartered Institute of Housing, said the additional investment into affordable housing is “very welcome” and will help support the delivery of much-needed affordable homes ahead of a new AHP at the forthcoming Spending Review.

He said: “The confirmation that 50% of the additional investment in the AHP will be used to support building new homes at social rent is particularly welcome as these are the most affordable and needed.”

Mr Smart added: “We also welcome confirmation of action to implement the Supported Housing (Regulatory Oversight) Act. It is right that the government moves to clamp down on a small minority of exploitative supported housing landlords who are providing unacceptable poor homes to vulnerable people. We look forward to seeing more details and working with government, housing providers and local authorities to ensure these commitments translate into real change on the ground.” 

Andy Hulme, chief executive of Hyde Group, said: “It’s important to welcome this increased funding for the AHP, which we hope is a downpayment on future funding, as it comes at a time when the number of new homes started by housing associations in London has fallen to a record low.

“We welcome the direction and intent behind this one-off funding. However, the most important thing the government can do is to make social housing financially sustainable so we can play our part in meeting the government’s 1.5 million new homes target in this parliament.”