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Temporary Accommodation: Construction

Asked by Kevin HollinrakeConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 3 March 2025UIN 31949

The question

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Written Statement of 12 February 2025 on Further support for social and affordable housebuilding and next steps on supported housing, HCWS447, what the estimated average grant subsidy per unit is for funding provided for local authority temporary accommodation.

Answered by Matthew Pennycook

The amount of grant provided under the third round of the Local Authority Housing Fund is calculated relative to local property prices. We provide a grant of 40% of the median house price in the local authority area, or 50% for larger homes.

On the 12 February the government committed a further £50 million in new funding and around £30 million of reallocated funds taking the total funding available to £530 million. Based on the total expected commitment and outcomes, the average grant rate for each home delivered will be c. £196k.

We do not provide different grant rates for tenures under the Local Authority Housing Fund, but we do require that all homes delivered under the fund are affordable.

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