£8.6 billion funding package announced to boost home ownership

A new £8.6 billion funding package has been announced to help more people become home owners.

The government says it aims for home ownership to become "realistic and affordable" for thousands more families, with the money expected to deliver around 119,00 homes in England.

Half are expected to be sold and tens of thousands will be built to rent at a discounted rate.

The funding forms part of the £11.5 billion affordable homes programme which runs from 2021 to 2026 and could provide up to 180,000 new homes.

The £8.6 billion allocation will deliver properties including 57,000 homes for ownership, 29,600 for social rent, typically around 50% to 60% of market rates, and 6,250 affordable rural homes.

The remaining homes will be available for “affordable” rent, officials said.

Housing Secretary Robert Jenrick said: “Creating more opportunities for home ownership is central to this government.

“This £9 billion funding is a landmark moment for our affordable homes programme and will ensure good quality housing for all as we build back better after the pandemic.

“This huge funding package will make the ambition of owning a home a reality for families by making it realistic and affordable.

“We are also ensuring tens of thousands of new homes for rent are built in the years ahead, including social rent, so those on the lowest incomes can enjoy good quality, secure, rented homes, built and managed by reputable providers.”

Nearly 90 partnerships across England, including councils, housing associations and private providers, successfully bid for a share of the cash.

Nearly £5.2 billion of the package will be delivered outside London by Homes England, with the Greater London Authority responsible for delivery in the capital.