Budget to include over 1 billion pounds for affordable housing

The United Kingdom government will allocate more than 1 billion pounds for social and affordable housing in England during the upcoming Budget, the BBC reported. This additional allocation brings total funding for the government's 10-year housing programme to more than 40 billion pounds. The announcement is expected on Wednesday. [1]

According to the BBC, regional leaders and mayors across England are expected to receive increased funding and broader powers under the new plans. Local councils will be permitted to borrow money from the government at preferential interest rates to finance local house-building projects. [1]

Affordable housing is defined as housing deemed affordable for households earning at or below the median income. Demand for affordable housing typically increases during periods of rising rent costs and declining housing affordability. [2]

Chancellor John Healey stated that English cities and regions would receive the right to decide their own future, the BBC reported. Prime Minister Andy Burnham stated that the initiative is designed to shift power to regional leaders. [1]