The Housing Finance Corporation (THFC) has played a central role in the UK government’s recent £350 million commitment to affordable housing, providing crucial loans and funding to support the delivery of social and affordable homes across the country.

The funding package includes a £300 million boost to the Affordable Homes Programme (AHP) and a £50 million increase to the Local Authority Housing Fund. These resources are expected to enable the construction of up to 2,800 new homes, with around half designated for social rent and more than 250 homes aimed at improving temporary accommodation through local councils.

The Affordable Homes Programme top-up ensures the continuity of development ahead of the next Spending Review, maintaining progress toward national housing targets. The Local Authority Housing Fund increase focuses on helping councils provide housing for vulnerable individuals and families currently in temporary accommodation.

This latest investment builds on previous commitments, including a £500 million boost announced in October 2024, and is part of a long-term strategy to deliver 130,000 new homes by 2026 under the AHP. The funding is expected to deliver a mix of tenures, with priority given to social rent, directly supporting families and individuals most in need. Sector leaders have welcomed the announcement as a sign of government recognition of urgent housing needs and a way to maintain momentum in the affordable housing sector while larger multi-year programs are developed.

THFC has also been linked with additional funding arrangements, including partnerships with the National Wealth Fund, further supporting social housing providers and promoting sustainable communities. Parallel initiatives include plans to improve standards in supported housing and clamp down on rogue landlords, ensuring quality and security in both new and existing affordable housing.

The £350 million commitment combines loans, grants, and regulatory measures to accelerate affordable and social housing delivery, strengthen local authority capacity, and enhance housing security for thousands of people across the UK.