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Government confirms 25,000 homes figure is ‘an estimate’
The government has confirmed that the 25,000 homes it expects to be built with £2bn of new funding is an “estimate”.
On Wednesday the government briefed journalists that the £2bn could pay for 25,000 social rented homes over five years. However, today a Department for Communities and Local Government spokesperson said this was just an estimate.
The spokesperson added that the exact number will depend on the bids that are submitted by councils and housing associations. The money will likely fund a number of affordable rented homes and properties at other tenures as well.
Social rented homes require a higher subsidy than affordable rented homes, so if a provider bids to build affordable rented homes they could build more homes overall.
The spokesperson said the £2bn funding will be focused on “supporting council housebuilding and housing associations in areas of greatest need and councils and housing associations will need to demonstrate that bids for social rent provide additionality”.
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A date for when the funding is open for bids will be announced shortly.
Sector leaders had hoped new flexibilities would be given to councils to help them build more homes, such as a relaxation of the Housing Revenue Account borrowing cap and over the use of Right to Buy receipts.
However, in response to Inside Housing’s request for more detail on any new flexibilities, the spokesperson only cited the new rent deal.
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