Budget announces £5 billion housebuilding investment

The government will invest more than £5 billion to deliver its housing plans next year, according to the chancellor Rachel Reeves.

Delivering the new Labour government’s first Budget today (October 30), Reeves said ministers would raise investment to more than £1 billion to accelerate the remediation of unsafe residential buildings “following the findings of the Grenfell Inquiry”.

The chancellor announced £3 billion in housing guarantee schemes to support SME housebuilders and the Build to Rent sector.

She also stated she would increase the Affordable Homes Programme to £3.1 billion to create “thousands of new homes”.

And to also increase the supply of affordable housing, Reeves stated that the government would reduce Right to Buy discounts. Local authorities would be able to retain full receipts from the sales, to reinvest into “existing stock and new supply”. This move would also “give more people a safe, secure and affordable place to live”.

And, as announced by HM Treasury shortly before the Budget, Reeves said the government would bring a five-year social housing rent settlement with rents rising in line with the Consumer Price Index +1%, “to provide stability” to registered providers. The government will consult on this, including on …