More than two-thirds of a £4.2bn government fund designed to boost housing development in the UK remains unspent, despite its initiation over six years ago. Launched in 2017, the British government’s Housing Infrastructure Fund aimed to facilitate the creation of 324,000 new homes by providing local authorities with the necessary funding for infrastructure, including transport and utility connections.

However, a Freedom of Information request revealed that only about 31 per cent of the fund, approximately £1.3bn, has been utilised to date. The request, conducted by local government researcher Jack Shaw, disclosed that the majority of this spending occurred in 2021 and 2022.

Further scrutiny has uncovered a reduction in the government’s initial target from 324,000 to 270,000 homes, following the withdrawal of funding for several projects.

This revelation comes at a time when the UK faces a severe housing crisis, particularly in densely populated areas like London. A report from the Center for London highlights the capital’s struggle to match housing supply with its growing population, leading to increased prices and overcrowding. In London, 11 per cent of homes are overcrowded, a stark contrast to the 4 per cent national average.

A Department for Levelling Up, Housing and Communities spokesperson commented on the situation, expressing confidence in utilising the entire £4.2 billion of the Housing Infrastructure Fund. The spokesperson emphasised that more than 23,000 homes have already begun construction, and the expenditure is progressing as planned. Acknowledging the challenges faced by major infrastructure projects, including cost pressures and other factors, the department reassures its commitment to working closely with Homes England to ensure full budget utilisation and maximise housing capacity.