UK Government Plans £2bn Investment for 18,000 New Affordable Homes

The UK government has announced a significant investment of £2 billion to construct up to 18,000 new affordable homes, marking a crucial step in addressing the ongoing housing crisis. Chancellor Rachel Reeves emphasized that at least half of these homes will be allocated for social housing, amid increasing homelessness rates across the country. Additionally, a separate £20 million funding initiative will empower community groups to build around 2,500 homes, promoting local ownership and development. This funding aims to break down barriers for community-led housing projects, allowing residents to take charge of their housing needs. However, housing charities insist that the majority of new homes should be made available at social rent rates. The government’s broader goal includes building 1.5 million new homes over the next five years, with a pressing need for 90,000 social homes by 2027/28 to meet future targets.