Affordable UK Housing: Receives $10 Billion from Government

In an effort to provide more affordable UK housing, for families and individuals unable to enter the housing market as buyers, the UK government has pledged £10 billion pounds to housing initiatives.

With 170,000 homes already in the pipeline by 2015 and an additional 30,000 homes through government grants, a total of 200,000 affordable homes for rent are projected for availability by 2015. Government grants and initiatives aim to house those affected by 2008's devastating housing crash, which had crippling effects on the economy as a whole.

These housing promotions will be run by the Affordable Housing Finance, which is part of the Housing Finance Corporation. The goal is to realize the potential in the private housing rental sector by unlocking funds for providers of housing projects, allowing for loans for investment on a more reasonable basis.

The first of these programs will guarantee £3.5 billion pounds in debt to be lent to housing groups to build homes for those in need. This will contribute to the previously mentioned 200,000 projected rental homes.

The second will be an additional £3.5 billion pounds to be lent to property investors looking to get into the private rental sector. These loan funds will be offered at more affordable rates to promote economic growth.

Based on the success and demands of these initiatives, another £3 billion pounds has been reserved to include, bringing the total funds pledged to £10 billion.

These funds will soon be available for application, but many developers are in talks with those involved to explore eligibility requirements. The housing projects will promote growth in UK cities and create much needed jobs for those in the housing construction sector.

What do you think of this large sum of money dedicated to affordable UK housing? Do you think these funds are being allocated properly, or do feel they would be more beneficial somewhere else?

Let us know your thoughts in the comment section below.

Photo Courtesy of ClatieK’s Flickr