UK Housing Crisis: Government Unveils £12bn Plan to Build 180,000 Affordable Homes

The government has unveiled a £12 billion affordable homes plan that aims to deliver 180,000 new properties across England by 2030, in what ministers are calling the most ambitious social housing programme in a generation.

The plan includes funding for 90,000 social rented homes, 60,000 shared ownership properties, and 30,000 discounted homes for first-time buyers. Housing Secretary Matthew Pennycook told MPs the plan represents a fundamental shift in how this government approaches housing policy.

Council leaders have broadly welcomed the announcement but warned that delivering 180,000 homes will require significant additional investment in infrastructure. The District Councils' Network described the plan as a step in the right direction.

The government has defined affordable rent as no more than 30% of local median household income. Shared ownership properties will be available from as little as 10% equity share, substantially lowering the deposit barrier for first-time buyers.

Priority for discounted homes will be given to key workers including NHS staff, teachers, and police officers. Alongside the funding, the government has confirmed planning reforms to accelerate approvals for affordable housing developments.