"This will boost housebuilding by encouraging providers to deliver a mix of homes for both affordable rent and low-cost ownership that is most suited to each place."
Communities Secretary Sajid Javid has announced that the government has unlocked £7 billion in what he describes as a "dramatic expansion of the government’s affordable housing programme".
Housing providers can now apply for a share of the fund, which was allocated an additional £1.4 billion at the Autumn Statement in a bid to deliver 40,000 new affordable housing starts across the country.
Alongside this extra funding, the government is expanding the variety of tenures available to include Affordable Rent, Shared Ownership and Rent to Buy.
Rent to Buy homes will be let with rents set at or below 80% of the local market rent for a set time period, giving tenants the opportunity to save for a deposit and then the option to buy their current home.
Communities Secretary Sajid Javid said: "This government is committed to increasing housing supply and halting the decline in affordability.Our newly expanded affordable housing programme, turbo-charged by a multi-billion pound investment, will allow housing associations to build more homes in places where they are most needed, particularly for families who are just about managing.By encouraging the delivery of more homes under a variety of tenures, we can create a housing market which truly works for everyone, meeting the diverse housing needs of this country."
Housing Minister Gavin Barwell commented: "Up and down the country we are investing more in affordable housing to help make the dream of home ownership a reality for thousands more tenants. This includes opening up the housing market to younger people and providing decent, affordable homes for rent for those who cannot afford to buy."
Homes and Communities Agency Chairman Sir Ed Lister added: "The HCA is leading the government’s drive to increase the scale and pace of delivery of housebuilding. The expanded affordable housing programme will help us continue to work with both housing associations and developers new to this area of the housing market to increase the availability of affordable homes.
"The expanded programme will also allow providers the flexibility and agility to respond to local needs and markets. This will boost housebuilding by encouraging providers to deliver a mix of homes for both affordable rent and low-cost ownership that is most suited to each place. More will also be announced in the housing white paper out later this month."