£10bn housing blitz launched as Britain faces rent crisis

Britain is pressing ahead with almost £10bn of funding for lower-cost housing in the first major wave of a decade-long programme aimed at tackling the country’s chronic shortage of homes.

London will take the largest share, with ministers putting councils at the centre of the drive to build more social-rent properties.

London gets the lion’s share of the housing push

More than £7bn will be allocated to London as part of the first tranche of a previously announced £39bn, 10-year housing programme. Local authorities are expected to deliver more than half of the new homes funded in the capital.

The government has not yet given a precise figure for how many homes the first wave will produce, because London’s allocation still has to be divided between individual councils. Around 20,000 new homes in northern English cities are expected to receive funding.

The scale of the investment reflects the political pressure created by soaring housing costs, homelessness and a lack of affordable properties for lower-income households.

Burnham bets on social housing to cut welfare costs

Prime Minister Andy Burnham has made a major expansion of social-rent housing a central pledge since entering Downing Street in July. Such homes typically charge around half the market rent, offering tenants greater security while potentially reducing the state’s long-term welfare bill.

“Councils built this country out of a housing crisis once before,” Burnham said. “Backed properly, and trusted to get on with it, they will do it again.”

The government says more than £16bn of the overall 10-year fund will eventually be directed outside London, extending the programme across England.

Housing drive becomes test of devolution

The scheme also advances Burnham’s wider push to transfer power away from Whitehall. Mayoral authorities will be given a greater role in setting the strategic direction for housing investment in their areas.

The immediate challenge will be turning billions in promised funding into homes quickly enough to make a visible difference. With the full £39bn programme stretching over a decade, ministers face mounting pressure to show that the first wave can deliver where previous housing pledges have fallen short.

UK moves ahead with first £10 billion wave of low-rent housing plan