Housing associations to get £2bn investment over next ten years

Theresa May is to announce £2bn in funding for housing associations over a decade. Speaking at the National Housing Federation summit, which represents housing associations, the prime minister will say that “the most ambitious” providers can bid for the funds.  She will argue that long-term funding for new schemes is one of the best ways to alleviate the housebuilding crisis.  The money will come from housing budgets in the next spending review period. Serious role May is expected to say: “You said that if you were going to take a serious role in not just managing but building the homes this country needs, you had to have the stability provided by long-term funding deals. Well, eight housing associations have already been given such deals, worth almost £600m and paving the way for almost 15,000 new affordable homes. “And today, I can announce that new longer-term partnerships will be opened up to the most ambitious housing associations through a ground-breaking £2bn initiative. Under the scheme, associations will be able to apply for funding stretching as far ahead as 2028-29 – the first time any government has offered housing associations such long-term certainty.” Delivering homes Reacting to the news, Ben Denton, managing director of Legal & General Affordable Homes, said: “We are pleased that the government has announced increased funding towards affordable housing today. This will help to deliver more homes at levels that residents can afford in areas which need it most. This additional funding will be allocated over a much longer period – to 2028-29 – allowing developers and housing associations to plan with much more certainty.  “While good news, there is still more work to be done. Over the past decade, only 3,000 affordable homes have been delivered each year, highlighting the need to smooth the way for more institutional money to enter the sector.” Paul Hackett, chair of the G15 group of housing associations and chief executive of Optivo, added: “This is the first time government has launched funding programmes that span spending review periods. I hope this historic £2bn commitment is the start of a much longer-term strategic relationship between the sector and the government.” To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette