Prime Minister Andy Burnham has moved away from his campaign pledge to overhaul national housing policy as the government unveiled the first £10 billion tranche of its 10-year Affordable Homes Programme.
The funding follows the existing policy direction of the Starmer administration, with ministers allocating money towards a range of affordable housing schemes in England rather than directing the entire package towards council-built social housing.
The Guardian reported that the announcement marks a departure from Burnham’s position during his campaign to represent Makerfield.
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At his campaign launch, Burnham called on the government to use the full £39 billion housing fund for council housebuilding.
“There’s £39bn allocated over a 10-year period. I’m saying that it should be dedicated to council homes. Let’s not be coy any more. I’m saying council homes because control matters,” Burnham said.
However, the funding framework announced on Monday maintains a broader approach to affordable housing.
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The government will initially provide £10 billion to support the construction of 70,000 homes outside London. About 60% of the homes will be offered at social rents, while the remaining 40% will support shared ownership, sheltered accommodation and other affordable housing schemes.
Ministers have also reserved a separate £6 billion for London, which they will allocate in a later phase. The government has selected 33 strategic partners to receive guaranteed funding over the next decade to deliver the programme.
For the first time under the Affordable Homes Programme, three local authorities will also serve as direct delivery partners.
The government says the move will strengthen councils’ role in delivering social housing and support its ambition to establish the biggest council housebuilding programme in generations.
A further £16 billion remains to be allocated from the wider programme. Future funding rounds are expected to place greater emphasis on council-led developments and social-rent homes as the government works towards its target of delivering 300,000 affordable homes over 10 years.
Housing Secretary Angela Rayner said the programme would help families struggling to secure affordable and stable housing.
“Growing up on a council estate and raising children as a young working mum, I know firsthand that access to a secure, affordable home can be a lifeline for families up and down the country,” Rayner said.
She described the investment as a “once-in-a-generation” intervention that would help reduce housing waiting lists and give more families the opportunity to establish secure homes.
Shelter also welcomed the inclusion of local authorities in the programme.
Sarah Elliott, the charity’s chief executive, said the funding would give councils greater capacity to tackle homelessness and increase social housebuilding.
However, she urged the government to address the financial pressures facing councils in the autumn Budget, particularly the housing debt that limits their ability to sustain large-scale construction.
The government’s approach differs sharply from the housing proposals unveiled by Reform UK on Monday.
READ MORE: Starmer resigns as UK Prime Minister, Labour leader
Reform UK has proposed expanding the social housing stock through measures that include removing foreign nationals from social housing and increasing borrowing capacity for housing associations, rather than relying solely on increased direct government capital spending.
