The government has pledged to build 180,000 new affordable homes across the UK, with the first new builds becoming available next year.
Running from 2020-2026, the £11.5 billion investment will be the largest single-source investment for the development of 'affordable housing' in the country.
At least 90,000 of the new homes which are to be built under the plan will be available for purchase under a new shared ownership model that reduces the initial deposit buyers have to pay.
The new model would cut the minimum share in their home that buyers can purchase from 25% to 10% and would allow people to top up their shares in increments of 1%.
The government has also promised to ensure that landlords foot the bill for repairs and maintenance for the first ten years after the build.
Today's announcement represents the highest single funding commitment to affordable housing in a decade. Thanks to the range of flexible ownership options being made available, more families across the country will be able to realise their dreams of owning their own home.said Housing Secretary Robert Jenrick
However, in order to realise this dream, tenants will need to pass an income test to ensure that household income is at least £80,000, or £90,000 in London.
According to the Office of National Statistics, average earnings in 2019 were just £30,420 (or £38,324 in London).
Greater London Authority (GLA) will receive £4 billion - 35% of the funds - to develop new homes in London, over half of which will be available for discounted rent.
This intermediate rent scheme has been in place since the early 2000s and sees developers earmark certain parts of new development for renters who cannot afford the full price.
The exact discount varies depending on the council and developer in question, but most schemes tend to offer a 50-60% discount on the market rate.
Out of these discounted rental properties, 10% will function as supported housing for people with mental or physical health problems.
The remaining £7.5 billion will be delivered to Homes England, which oversees affordable and social housing in the UK.
The non-governmental body is expected to invite bids from councils, housing associations and private developers from across the UK next week.
Despite the challenges of COVID-19, this long-term funding settlement gives our partners the confidence they need to invest in new homes and the communities they work for.Said: Nick Walkley, Chief Executive of Homes England
The £11.5 billion investment was also issued with a caveat from the Department for Housing, Communities and Local Government, that the final number of homes may only equal the target 'should economic conditions allow'.
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