How the budget will impact renters: what you need to know

What’s the affordable homes programme? 

The AHP is a government scheme designed to increase the supply of affordable housing.  

Affordable housing is housing that is considered affordable for people whose household income is at or below the average level set by the national or local government.  

The AHP provides funding to local councils and housing organisations to build or acquire affordable homes for rent or purchase.  

The chancellor announced an additional £500m for the AHP, which is expected to help build 5,000 new affordable homes, focusing on rental and ownership properties with an emphasis on social rent. 

Some housing campaigners support these changes. Councillor Louise Gittins from the Local Government Association (LGA) said these moves will help replace sold homes and reduce the loss of existing housing stock. 

But some experts worry that the changes could make it harder for long-term renters to buy their homes.  

Mortgage lender Ryan Etchells noted that many renters might face higher costs, making homeownership even tougher. 

The National Residential Landlords Association also raised concerns. It warned that higher taxes on rental homes could seel half a million fewer rental homes over the next decade, leaving struggling tenants with limited options. 

Call for more affordable housing  

Polly Neate from Shelter says there’s an urgent need for genuinely affordable social homes. 

With homelessness at record levels, she argues the government must invest in building more social housing to help families and reduce pressure on temporary accommodation.  

“A chronic shortage of social homes combined with rocketing private rents is tearing communities apart – pricing families out of their local areas and pushing over 151,00 children into homelessness. Families are forced to live out of suitcases, stuck in grotty homeless accommodation for years. 

“Building social housing saves the taxpayer money, boosts jobs, reduces the burden of poor housing on our NHS and, crucially, will end homelessness for good,” she said.