Chancellor Rachel Reeves has announced a £39bn investment in social and affordable housing over the next 10 years in the Government's Spending Review.
Reeves told the House of Commons that it was ‘the biggest cash injection in social and affordable housing in 50 years'.
It is believed the money will be provided through Homes England to housing associations, councils and developers, though details are still unclear.
The chancellor also said Homes England would be designated a public financial institution, with an additional £10bn for financial investment ‘to unlock more homes' as the Government seeks to meet its pledge to build 1.5m new homes in this parliament.
Jonathan Werran, chief executive of think-tank Localis, said deputy prime minister and housing secretary Angela Rayner had secured ‘a big win' with the £39bn pledge.
‘The quantum is not big enough on its own to make the sort of generational shift in housing provision we saw in the immediate post war era, but in the circumstances, and with an extra £10bn for financial investments through Homes England to crowd in private investment, it is a highly creditable bit of spending review negotiating by the Ministry of Housing, Communities and Local Government.'
But Tracy Harrison, chief executive Northern Housing Consortium which represents councils in the north of England, said: ‘We hope the new Affordable Homes Programme will offer continued flexibility to replace existing homes that don't meet the needs of communities.
'However, that alone will not address the North's regeneration crisis with over 126,000 social housing homes reaching the end of their life, and more than quarter of private rented homes in the North not meeting Decent Homes Standards.
‘To make sure everyone has access to good quality home a dedicated funding stream to support housing-led neighbourhood regeneration is urgently needed.'
Reeves also announced that the Government would stick to its pledge to insulate millions of homes through the ‘Warm Homes' programme, which also contributes towards energy efficiency schemes for households.
Alongside protecting spending on homelessness and rough sleeping, the Government said it was providing £100m for early interventions to prevent homelessness, in addition to providing £950m of capital investment for a fourth round of the Local Authority Housing Fund starting next April.
Ministers have also pledged to end the use of asylum hotels in this parliament.
