Rayner promises to deliver ‘biggest boost to affordable housing for a generation’

Elsewhere in her speech, she took aim at the Department for Levelling Up, Housing and Communities’ £1.9bn underspend reported in July this year.

Ms Rayner said: “Where the Tories have snatched billions from affordable housing, Labour will unlock government grants to deliver new homes by making the Affordable Homes Programme (AHP) more flexible so that every penny gets out the door to build the homes people need.”

Labour’s plans for more flexibility in the AHP include enabling funds to be diverted to projects where there is higher demand, so funding for no-go projects can be freed up to create the housing people need.

Homes England, councils and housing associations will be allowed to use a greater proportion of grant funds that they receive to buy social and affordable homes from existing housing stock, to help get the homes needed and deliver stalled sites.

Labour’s proposals also include improving economic modelling to better secure future funding. 

This would involved installing appropriate contingency plans to stop external pressures from having such disproportionate effects on the AHP in the future. 

Ms Rayner, who took on the shadow secretary of state for levelling up, housing and communities role from Lisa Nandy last month, also took aim at the private rented sector and the leasehold system.

She said: “Too many people are stuck paying unaffordable private rents, or living the nightmare of a home wrapped in flammable cladding. 

“While leaseholders linger in a system left over from the Middle Ages, the dream of homeownership is slipping away as more than a million families wait for social housing.

“Over the past 13 years, Tory ministers sold or demolished more than double the number of social homes than they’ve delivered.

“Families who need a council house are often stuck in cramped temporary accommodation, or at the mercy of private landlords.

“We know a secure home, like a secure job, is a crucial foundation for a good life. That’s why we will get social homes built, brick by brick.”

Ms Rayner also pledged to ban ‘no-fault’ evictions and give first-time buyers “first dibs” on new developments in their communities.

Labour’s plans for would-be homeowners include a mortgage guarantee scheme “for those who don’t have access to the bank of mum and dad”, and Ms Rayner said the party will “end the medieval leasehold system, with root and branch reforms”. 

Following Ms Rayner’s speech, the National Housing Federation (NHF) immediately welcomed Labour’s plans.

Kate Henderson, chief executive at the NHF, said: “People in every community in the country are affected by the housing emergency. This is a crisis that has deep roots, and it will take time, commitment and political will to change. 

“So I welcome this strong and ambitious support to help housing associations deliver the homes this country desperately needs. The need for a long-term plan has never been plainer.

“Our research shows that, without action, by the end of the next parliament, nearly five million households will be living in unaffordable homes and 150,000 children will be facing homelessness. We need certainty and stability to be able to build, improve and maintain the safe and secure homes needed to keep up with demand. 

“A long-term plan to solve the housing crisis will transform the health, economic security and life chances of millions, and it’s great to see recognition and understanding of the central role that social and affordable housing will play.”

Gavin Smart, chief executive of the Chartered Institute of Housing, said:  “If we’re going to tackle the housing crisis we need to accelerate truly affordable housing delivery, with clear targets, strategic planning and much-needed capacity building. 

“The proposals outlined today are a welcome first step in demonstrating the significance placed on this agenda, with recognition that the state has a key role to play. It’s good to also see a clear commitment to bringing forward reforms to the private rented and leasehold sectors. Everyone should have a decent, secure and affordable place to call home.”