Next government must increase spending on affordable housing

Published on 30th January 2024, 6:26am

The British Property Federation (BPF) has launched its manifesto ahead of this year’s general election, which includes key policies designed to help the next government bolster economic prosperity and increase affordable housing supply by working closer with housebuilders.

The property trade group has called on the next government to invest an additional £14bn into affordable homes to ensure 145,000 are built every year.

The BPF has also called on whoever wins the next election to also ensure that around 30,000 Build-to-Rent properties are built across the country.

Melanie Leech, the group’s chief executive, said: “This year’s election comes at a critical time. The next government must not only set out a compelling vision for the future but will need to persuade the electorate that it can deliver.”

The BPF believes that if the government works with the industry it could unlock billions of pounds of investment from property companies to improve infrastructure, housing supply, town centres, and the wider economy.

It said that £10bn of new private capital could be unlocked if the government increased subsidies for affordable housing by £9bn-£14bn, adding that this could help deliver 145,000 new affordable homes every year.

Leech said: “As a country, we need to stimulate economic growth and become more productive.

“We need to invest billions of pounds in our infrastructure, our housing is of insufficient quantity and quality, and town centres across the UK need reinvention.

“Looming over these issues is the existential challenge facing all of us – the need to decarbonise our society.”

The BPF asked for government action in other areas, including building stronger town centres and trying to help developers erect greener buildings.

It should include more resources for local planning officers, and a central planning system which helps local and regional authorities with major new projects, it added.

The group also asked for reform to the business rates system.

A Department for Levelling Up, Housing & Communities spokesperson said: “We need to build more affordable homes and that is why we continue to invest in our £11.5bn Affordable Homes Programme, delivering tens of thousands of homes to buy and rent across the country.

“The Secretary of State recently set out new measures to speed up the planning system and we remain on track to deliver one million homes over this Parliament.

“Our long-term plan for housing will allow us to go even further, backed by £10bn investment to boost supply and build the homes that local communities want and need.”

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