Affordable housing scheme gets £3billion boost to deliver 20,000 new homes

The housing secretary, Michael Gove, has announced a £3billion expansion to the government-backed loan scheme to help build thousands of new affordable homes.
The Affordable Homes Guarantee Scheme provides low-cost loans to registered housing providers, with the extra funds expected to deliver up to 20,000 new homes across the country. For the first time, the scheme can also be used to upgrade existing properties, with providers able to apply for loans to carry out vital building safety works, such as the removal of dangerous cladding.
With backing from the Department for Levelling Up, Housing and Communities, the now £6billion fund will aim to help housing providers expand their business, build more affordable homes and upgrade their existing stock.
Housing minister, Lee Rowley, said: “We know getting cost-effective loans can be a stumbling block for many developers building more affordable homes or upgrading their existing stock, so it is of the quality tenants deserve.”
“This new round opening today will not only improve the lives of those already living in homes, but help thousands of families benefit from new, high-quality, affordable housing.”
Launched in 2020, the scheme, delivered by ARA Venn, is already helping 12 providers to deliver 6,290 new homes, with thousands more to be built in the coming years.
Richard Green, portfolio manager for AHGS20 and partner at ARA Venn, said: “We are delighted that we will be able to provide low-cost loans to private registered providers across England to now facilitate investment in existing homes, in addition to new ones.”
“We look forward to continuing and building on the success of the Affordable Homes Guarantee Scheme, that has already proved a key source of funding for the sector.”
“This timely expansion of the scheme allows us to support the sector’s balancing of investment priorities between providing new homes and ensuring the quality and energy efficiency of existing homes.”
It is believed that Michael Gove will soon announce the extension of the law which permits developers to convert commercial buildings into homes without the need for planning permission. The reforms to planning rules will mean that councils will not be able to stand in the way of developers proposing to convert brownfield sites, with planning permission granted automatically.
Craig Carson, managing director at Barratt West London, commented: “There is a scarcity of ‘obvious’ construction sites left, so many are now looking toward brownfield or even greenbelt sites. Making heritage assets a focal point for development can go beyond the regeneration of buildings and places; it can bring together communities and foster a sense of ownership that encourages repeat use. Something we’ve seen that is popular among first-time buyers and young professionals is that they want to be a part of something bigger. Using buildings to create homes and communal facilities like community centres, shops, cafes, sports centres and family play areas, not only injects life and vibrancy into these spaces but also encourages footfall into forgotten parts of towns and cities, kickstarting the permanent and sustainable development of the area.”
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