More than £1 billion in additional funding for social and affordable housing in England is expected to be announced in the Budget, the BBC reports. The money would take the value of the government’s ten-year housing programme to more than £40 billion. This remains a pre-Budget plan, rather than confirmation that funding has been awarded or released.
In its report published on 25 October, the BBC also describes planned increases in powers and funding for mayors and regional leaders in England. Alongside the extra housing money, the government is expected to announce measures intended to make it easier for local authorities to finance investment.
More regional funding and access to loans
According to Treasury information cited by the BBC, an initial £285 million in transitional funding is planned for 2027. It is intended to support local investment and reduce regional authorities’ reliance on fragmented competitive bidding for central government funds.
The government is also expected to announce work with mayors on a £1.5 billion lending facility, available from 2028. The Treasury says it could support housebuilding, high street regeneration and improvements to transport links. This would, however, provide access to money that must be repaid, rather than grants. The possible uses outlined do not amount to decisions to proceed with specific projects.
A separate part of the plans would make it easier for councils to borrow from the government for housing. Preferential interest rates would reduce the cost of that borrowing.
The housing announcement covers England, not the whole UK
For people waiting for a home, the programme’s details remain crucial. The BBC report does not specify how many homes the additional funding would deliver or who would be eligible for them. The announcement should therefore not be treated as the opening of a new application scheme or a change to the rules for applying for housing.
The housing funding described covers England, rather than the whole of the UK. The final scope of the funding and measures will become clearer once the Budget and detailed implementation rules have been presented.
