Labour's first Budget to deliver £500 million funding for 5,000 affordable homes

Rachel Reeves has issued a major announcement on affordable housing just days before Labour is due to give its first Autumn Budget. 5,000 new affordable social homes are set to be delivered with £500 million funding, as the Chancellor seeks to 'fix the housing crisis' our country is grappling with.

In a statement released this morning, Reeves explained: "We need to fix the housing crisis in this country. It’s created a generation locked out of the property market, torn apart communities and put the brakes on economic growth.

"We are rebuilding Britain by ramping up housebuilding and delivering the 1.5 million new homes we so badly need." Echoing this sentiment, Deputy Prime Minister Angela Rayner also said the initiative is a 'further significant step' to support millions of people nationwide.

She added: "We have inherited a housing system which is broken, with not enough homes being built and even fewer that families can afford. This is a further significant step in our plan to get Britain building again, backing the sector, so they can help us deliver a social and affordable housing boom, supporting millions of people up and down the country into a safe, affordable and decent home they can be proud of."

The Government said its fresh funding will bring the total investment in housing supply to more than £5 billion, aiding the delivery of 33,000 new homes through £128 million for housing projects across the country. While further details of the Affordable Homes Programme 'top-up' will be outlined in the upcoming Budget and Spending Review, its aim is to provide a mix of homes to buy and rent for below the market rate.

This will have a particular focus on homes for Social Rent, which is generally around half of the market rate. It comes as part of Labour's wider initiative to build 1.5 million homes by 2029.

In light of this, Kate Henderson, Chief Executive of the National Housing Federation, said: "We strongly welcome the £500m top-up to the affordable homes programme. This vital injection of funding, which we’ve been urgently calling for, will support housing associations to continue to deliver much needed affordable homes in the immediate term and prevent a collapse in delivery.

"We share the government’s ambition to build 1.5million homes over this parliament and stand ready to deliver the social homes needed, which is why we welcome a consultation on a new rent settlement."

The Budget, detailing the Government's future spending plans, will take place on Wednesday, October 30.