The areas in line for £10bn council housebuilding fund after Burnham announcement

The areas in line for £10bn council housebuilding fund after Burnham announcement Over £2.5bn has been earmarked for local mayors by the government - Bookmark - CommentsGo to comments The areas in line for a multi-billion pound boost in housing funding have been revealed as the government promises the “biggest council housebuilding revival in decades”. Around £10bn has been pledged to deliver 70,000 homes across England, the Ministry for Housing, Communities and Local Government (MHCLG) has announced. This will spread between 33 ‘strategic partners’, including councils, housing associations and other providers. Six local mayors outside of London will receive around £2.5bn. The funding is being delivered as part of the government’s £39 Social and Affordable Homes Programme (SAHP). The ten-year sum was first agreed by Sir Keir Starmer and Rachel Reeves in 2025, alongside housing secretary Angela Rayner during her first term in the role. Ms Rayner said: “Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live. “That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.” Around 134,000 households housing over 176,130 children are currently living in temporary accommodation, as of the latest statistics. At the same time, over 1.3 million households are on their local authority’s waiting list for social housing. Through the SAHP, 60 per cent of homes built are expected to be for social rent. This is the most affordable form of rented housing, typically costing 50 to 60 per cent of local market rates for long-term tenancies. Andy Burnham’s previous mayoralty, Greater Manchester, will receive the largest share of funding at £529m to support around 4,400 new homes. The other mayoral authorities which have had funding announced through this first wave are West Midlands, North East, West Yorkshire, Liverpool, and South Yorkshire. Announcing the pledge, the prime minister said: “No child should be raised in a hostel room and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home. “Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.” Council housebuilding across the UK has faltered in recent years, with just 2,000 completions annually in the five years leading up to 2025. This compares to a postwar peak of an average 103,000 homes every year in the late 1970s. Earlier this month, local leaders and house builders told The Independent that increased costs in the sector and a lack of support from central government was stifling ambitions to build more council homes. Today’s announcement comes after Mr Burnham pledged in June – shortly before becoming prime minister – to oversee the “biggest council housebuilding drive since the postwar period”. However, experts have said that reaching levels seen in the 60s and 70s is almost impossible under current conditions. Through the SAHP, the government intends to deliver 300,000 homes for mixed affordable rent by 2036. It would require an £8bn funding boost to make all of these social rent homes, research from the Resolution Foundation has found, which would still only be delivered at a rate of 30,000 a year – far below the postwar peak. A final funding settlement for London has not been announced by MHCLG. However, the Greater London Authority is expected to offer at least £6bn through the programme, with councils expected to deliver half the homes built. Responding to the latest funding announcement, mayor of London, Sadiq Khan said: “Thousands of Londoners will benefit from this new wave of new social and affordable homes, which will help people out of temporary accommodation and provide good, affordable homes to live in for the long-term, as we build a fairer, better London for everyone.” Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments