Business
People Are Panic Buying Homes As Prices Skyrocket Around The World
May 15, 2021
February 12, 2025
By Evans Momodu
4 minute digest
Deputy Prime Minister Angela Rayner has reaffirmed the government's commitment to building 1.5 million homes over the next five years, as ministers announce an additional £350 million for housebuilding. This includes a £300 million boost to the affordable homes programme, expected to deliver 2,800 new homes, over half of which will be designated for social rent. Additionally, a £50 million increase to the local authority housing fund aims to provide more than 250 new council homes.
The housing crisis remains severe, with over 123,000 households—nearly 160,000 children—living in temporary accommodation. Asked whether the government could realistically meet its ambitious housing target, Rayner insisted that they "can't afford not to." She acknowledged the urgency of the situation, highlighting that 1.3 million people remain on waiting lists for social housing.
Rayner defended the scale of the government's intervention, saying their measures would unlock "thousands more council and social homes." She emphasized the significant financial burden temporary accommodation places on local authorities, as well as the long-term impact on children's life chances.
The new funding follows an earlier £500 million allocation for affordable housing in October's budget. Local growth and building safety minister Alex Norris has warned that authorities or organisations receiving funding must return the money if they fail to deliver on their housing contracts.
The Local Government Association welcomed the funding announcement and expressed readiness to collaborate with the government to increase affordable housing. However, the organisation urged ministers to use the upcoming spring spending review to ensure councils have sufficient resources to meet the housing demand.
Housing charity Shelter has warned that at least 90,000 social rent homes need to be built annually for the next decade to clear waiting lists and homeless families. A recent report by MPs highlighted that a record number of children are living in bed-and-breakfast accommodations beyond the legal limit, with councils struggling to cope with rising homelessness.
Investigation also revealed that in some parts of England, children are spending as long as five and a half years in temporary accommodation. The crisis has worsened since 2021, particularly in London and the South East which the government is bent on tackling.
Source: Sky news