The Prime Minister today announced funding for housing associations, but she asked for something from them in return – a commitment to help transform the way we build homes.

In a speech to the National Housing Federation Summit, Theresa May said: “New longer-term partnerships will be opened up to the most ambitious housing associations through a ground-breaking £2 billion initiative.

“Under the scheme, associations will be able to apply for funding stretching as far ahead as 2028/29 – the first time any government has offered housing associations such long-term certainty.

“Doing so will give you the stability you need to get tens of thousands of affordable and social homes built where they are needed most, and make it easier for you to leverage the private finance you need to build many more.”

Transform the way we build

But The Prime Minister asked for help from housing associations in return. She added: “Today, I’m asking housing associations to use the tools we have given you. Not just to build more homes, though of course more homes are needed. But to take the lead in transforming the very way in which we think about and deliver housing in this country.

“Rather than simply acquiring a proportion of the properties commercial developers build, I want to see housing associations taking on and leading major developments themselves.”

Jackie Bennett, director of mortgages at UK Finance, said the announcement provides “much needed certainty regarding the government’s commitment to the social housing sector, enabling housing associations and their private funders to plan and build for the future.

“Affordable housing across the UK is an economic and social priority and lenders are committed to playing their part.

“UK Finance and its members now stand ready to work with the government and housing associations to support long-term investment in affordable homes.”