Government reports significant increase in affordable homes

November 24, 2022 by Alan

House Prices

The latest figures to be released by the Government indicate that this year has seen a significant increase in the number of affordable homes that have been built, in comparison to last year.

These figures show that there was a 13% rise in the number of affordable properties completed this year. That adds up to a total of 59,175 of them over the course of the year. By contrast, the previous two years saw 38,668 affordable homes constructed and made available for rent, which in turn represented an increase on the 34,001 completed the year before that.

The affordable rental home share for 2022 is 65%, with that figure incorporating intermediate, affordable and social rented properties. Just under half (44%) of the affordable homes that were built this year were financed through grants awarded under section 106 – which is a planning obligation agreed between property owners and local councils.

By contrast, sector 106 grants financed 47% of the properties built in 2021 and 51% of them for 2020 and 2019.

Speaking to Mortgage Strategy, Dorian Payne of the property development firm Castell Group stated that the figures reveal the depth of the housing crisis, adding:

“A National Housing Federation (NHF) study in 2019 estimated that 145,000 affordable homes are required per year in England, and this data indicates we are only achieving 40% of that requirement.”

Those who have completed a CeMAP mortgage advisor course and are looking to find loans for clients with complex financial circumstances will be aware of the ongoing shortage of suitable housing.