Britain Unveils £10bn Affordable Housing Plan

The British government has unveiled a £10bn ($13.5bn) investment in affordable rental housing, with a particular focus on London. Approximately 60% of the homes funded through the program are to be designated as social housing.

That proportion is in line with the program established by former Prime Minister Keir Starmer but falls short of the plan proposed by his successor, Andy Burnham. Burnham has promised that all homes built under the program will be provided by local authorities.

Burnham argues that greater involvement by local authorities in building social housing could reduce public spending directed toward private landlords, curb homelessness and provide greater security for lower-income households. Housing Minister Matthew Pennycook, however, said councils do not yet have the capacity to take over the entire program.

In the first phase, the government has allocated more than £7bn ($9.4bn) to London from a previously announced £39bn ($52.5bn) package spanning 10 years. London councils are expected to provide more than half of the new homes. More than £16bn ($21.5bn) from the overall package will gradually be directed outside the capital.

The first wave of funding is expected to support the construction of more than 70,000 new homes.

(Reuters, bak)