Chancellor announces £39bn for affordable and social housing

The chancellor has confirmed £39 billion for affordable and social housing over the next decade in her Spending Review, announced today (June 11).

In her review, covering the next three to five years, the chancellor Rachel Reeves announced the “biggest cash injection into social and affordable housing in 50 years” with a new Affordable Homes Programme as revealed earlier today.

Reeves said the £39 billion was “direct government funding”, for housebuilding, “especially for social rent”. She added she was “pleased to report that towns and cities including Blackpool, Preston, Sheffield and Swindon already have plans to bring forward bids to build those homes in their communities".

The chancellor also announced an additional £10 billion for financial investments, including through Homes England “to unlock hundreds of thousands of homes”.

Government will also provide £1.2 billion by the end of the Spending Review period for training and apprenticeships.

The government’s Spending Review document confirmed a ten-year social housing rent settlement from 2026 at CPI + 1%. A consultation will follow “shortly” on how to implement social rent convergence.

The document also stated that the Ministry of Housing, Communities and Local Government (MHCLG) would provide £2.5 billion of low-interest loans …