New figures show for the first time the alarming lack of government investment in affordable housing to rent
Figures collated by the Chartered Institute of Housing (CIH) reveal for the first time the extent to which government investment is being directed towards the private market and home ownership, with very little now directed towards helping the eight million households who will not be able to get onto the home ownership ladder.
The UK Housing Review briefing's summary of current government support for affordable and private market housing investment in England from 2015/16 onwards shows that out of the £45 billion of government investment dedicated to housing, just £2 billion is being spent on below-market rented housing, only four per cent of the total. This is largely because money previously directed toward housing for rent is now going towards low-cost homeownership initiatives, such as shared ownership and starter homes, where over £6 billion is now to be invested.
This means that 80 per cent of government commitments - a further £36 billion – is now going to wider initiatives to support the private market, especially via help to buy.
CIH chief executive Terrie Alafat CBE said: "These figures represent what we believe to be the biggest ever programme of government support for private housing.
"While we support the government's commitment to build one million new homes in England, our concern stems from the extent to which these new homes are created purely for the private market and home ownership.
"We need to see homes built for affordable and below market renting - for the 25-30 per cent of households who simply cannot afford to buy a home of their own."