London Councils express warm sentiment towards new housing plan
Autumn Budget Announces £100 Million for Homelessness Prevention in London
The UK government has announced a significant investment in tackling homelessness, with an additional £100 million earmarked for homelessness prevention in London over the next four years. This forms part of a broader £39 billion commitment to social and affordable housing aimed at addressing the chronic shortage of housing contributing to homelessness.
The funding, to be distributed from 2026-27, is intended to support front-line homelessness prevention efforts and is coupled with a forthcoming cross-government long-term homelessness strategy expected in 2025. This strategy will coordinate departmental actions to tackle the issue more effectively.
London Councils' Executive Member for Housing & Regeneration, Cllr Grace Williams, has welcomed the announcements, stating that they are a positive step in light of the homelessness emergency in the capital. London boroughs face a black hole of £700m in their social housing budgets over the next four years due to costs outpacing rental income.
The government's proposals also include a review of the existing debt settlement for Housing Revenue Accounts, a 10-year settlement in the forthcoming consultation, and increasing investment in the Affordable Homes Programme. These measures aim to maximize boroughs' ability to drive up housebuilding and better protect existing and future social housing.
In addition, the government has proposed a reduction in Right to Buy discounts to better protect existing and future social housing. The government's proposal for a new five-year rent settlement is also a positive step, providing more certainty on social rent levels with rents to rise by CPI+1% for five years.
This package reflects a significant government commitment to preventing homelessness through increased investment in affordable housing and support services, responding to escalating housing pressures driven by rising rents and benefit cuts. One in every 200 households in the UK is experiencing homelessness, according to Financial Times analyses.
The Autumn Budget, announced on Wednesday, also includes £600m in additional grant funding for social care and £500m additional funding for the Affordable Homes Programme to boost housebuilding. However, the specific impact of the budget on house price growth is not mentioned in the provided text.
The budget does not directly address the struggling Wealden Council's issues with hitting new targets. Nonetheless, the government's commitment to addressing homelessness is a significant step forward in addressing the housing crisis in the UK.
The significant investment of £100 million for homelessness prevention in London, starting from 2026-27, will support front-line efforts and align with the upcoming cross-government long-term homelessness strategy. As part of the strategy, the government aims to increase finance for the Affordable Homes Programme, which is expected to boost business in housebuilding and protect social housing.
