UK Pledges £2 Billion for 18,000 Affordable Homes by 2029
LONDON (Reuters) - Britain's government on Tuesday pledged 2 billion pounds ($2.58 billion) to build up to 18,000 social and affordable homes in England as part of its efforts to deliver 1.5 million properties by the end of parliament and boost economic growth.
Construction is set to start in March 2027, with an aim to finish building by 2029, the government said.
Prime Minister Keir Starmer's Labour Party has made housebuilding the centrepiece of its growth strategy and announced planning reform to speed up construction and fix Britain's chronic housing shortage that has pushed up house prices and priced many out the market.
"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 figures, published on Monday, showed the average median house price cost 7.7 times the average full-time income in 2024. Temporary tax incentives for first-time buyers as well as for buyers of less expensive homes are due to expire at the end of this month.
Tuesday's funding is in addition to 600 million pounds, announced by finance minister Rachel Reeves on Saturday, to tackle severe skills shortages in the construction sector and train up to 60,000 bricklayers, electricians, engineers, and carpenters by 2029.
Reeves, who has vowed to stick to her fiscal rules, is set to deliver her spring statement on Wednesday alongside new economic and public finance forecasts from Britain's fiscal regulator.
The government said it will announce further long-term investment into housing in England when it concludes its spending review in June.
($1 = 0.7747 pounds)
(Reporting by Suban Abdulla)
