Government to invest £2 billion in 18,000 affordable homes by 2029

THE UK government on Tuesday announced a £2 billion investment to build up to 18,000 social and affordable homes in England.

The initiative is part of its broader target to deliver 1.5 million homes by the end of the current parliament and support economic growth.

Construction is scheduled to begin in March 2027 and be completed by 2029, the government said.

Prime minister Keir Starmer’s Labour Party has prioritised housebuilding as a key part of its economic strategy.

It has introduced planning reforms aimed at accelerating construction to address Britain's housing shortage, which has driven up prices and put homeownership out of reach for many.

“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder,” housing minister Angela Rayner said during a visit to an affordable housing site in Stoke-on-Trent, central England.

Official data published on Monday showed that in 2024, the median house price was 7.7 times the average full-time income.

Temporary tax incentives for first-time buyers and lower-cost homes are set to expire at the end of the month.

The funding announced on Tuesday follows the £600 million package unveiled by Chancellor Rachel Reeves on Saturday to address skills shortages in the construction sector.

The initiative aims to train up to 60,000 bricklayers, electricians, engineers, and carpenters by 2029.

Reeves, who has committed to maintaining her fiscal rules, is expected to deliver her spring statement on Wednesday alongside updated economic and public finance forecasts from Britain’s fiscal regulator.

The government said further long-term housing investment plans will be outlined in its spending review in June.

(With inputs from Reuters)