Inside Housing – News – Autumn Budget 2024: Reeves confirms AHP cash and £3bn guarantees for small house builders

Social housing providers will be given rent compensation based on the Consumer Price Index (CPI) plus 1% over the next five years.

Ms Reeves said: “Today I am committing more than £5 billion of public investment to deliver our housing plans next year.

“We will increase the affordable housing program to £3.1 billion, delivering thousands of new homes.

“We will provide £3 billion of guarantee support to increase the supply of homes and support our small home builders.

“And we will provide investment to refurbish sites across the country, including in Liverpool Central Docks, where we will deliver 2,000 new homes and secure funding to help Cambridge realize its full growth potential.”

Budget documents revealed that £3bn relates to “additional support for the SME and build-to-rent sector in the form of housing guarantee schemes to support the private housing market”.

£500 million AHP fund replenishment was confirmed by the Treasury on Monday.

Ms Reeves continued: “Having heard from local authorities, social housing providers and Shelter, I can today confirm that the Government will reduce Right to Buy discounts and local authorities will be able to retain full proceeds from any social housing sales. so we can reinvest it back into the housing stock and into new supply.”

Current supply of social housing in England depleted each year under the Right to Buy schemeand also disincentive advice build new social housing.

Rebates will be reduced along with increased protection for newly built social housing, and councils will be able to keep 100% of the proceeds from option-to-buy sales.

The Chancellor continued: “We will provide stability to social housing providers by setting social housing rents at CPI + 1% for the next five years.”

The settlement of long-term rents has been a cornerstone of lobbying demands from housing providers, who have said it is important to improve their financial position and maintain investment in existing stock.

Previously announced funding for brownfield sites included £56 million to open 2,000 new homes in Liverpool Central Docksand a £25 million investment in a new joint venture that will build 3,000 new homes across the country, with the aim of making 100% affordable.

The Budget also confirmed £47 million of funding to support the construction of up to 28,000 homes that would otherwise be halted due to nutrient neutrality in affected areas.