Almost 120,000 new homes, of which half will be affordable ownership, are to be built for first-time buyers and renters over the next decade, the government announced yesterday.

It has allocated £8.6bn out of its £11.5bn affordable homes programme for 57,000 homes for ownership, 29,600 for social rent and 6,250 affordable rural homes.

This follows other government schemes to help first-time buyers into home ownership including First Homes, offering new homes at a 30% discount on the open market value, and the 95% mortgage guarantee scheme, which helps first-time buyers secure a mortgage with just a 5% deposit.

Yesterday’s funding allocations marks an important step towards the government’s mission to deliver up to 300,000 new homes a year by the mid-2020s, according to housing secretary Robert Jenrick.

The MP said: “Creating more opportunities for home ownership is central to this government. This £9bn funding is a landmark moment for our Affordable Homes Programme and will ensure good quality housing for all as we build back better after the pandemic.

“This huge funding package will make the ambition of owning a home a reality for families by making it realistic and affordable.

“We are also ensuring tens of thousands of new homes for rent are built in the years ahead, including social rent, so those on the lowest incomes can enjoy good quality, secure rented homes, built and managed by reputable providers.”

Nearly 90 partnerships across England, including councils, housing associations and private providers, successfully bid for a share of the cash.

Almost £5.2bn of the package will be delivered outside London by Homes England, with the Greater London Authority responsible for delivery in the capital.

National Federation of Builders, NFB, housing and planning policy head Rico Wojtulewicz said: “It’s a healthy number of homes but the devil is going to be in the detail – how are they being built and who’s going to build them?”