Housing investment system

About the housing investment system

We’re establishing a new housing investment system. The system includes an investment strategy that sets the objectives for government investment in housing along with supporting investment plans and processes that effectively allocate investment in line with those objectives.

This new approach will help us better understand local housing needs, use evidence to guide how we allocate funding, find the housing solutions that will make the biggest difference and make sure we invest in the options that give the best value for money.

We’ll also keep track of how well our housing solutions are working, so we can make better investment decisions in the future.

Make-up of the housing investment system

The housing investment system is made up of the following components.

Government Policy Statement on Housing and Urban Development housing investment strategy

The strategy is included in the latest Government Policy Statement for Housing and Urban Development. It sets out the overall direction and intent for the Government’s new housing investment system, including investment objectives and the key actions for the strategy. 

Investment plans

Investment plans outline how funding will be allocated, when and if this becomes available. They describe what the government wants to purchase and the procurement approach, including the assessment criteria for deciding which proposals are successful, key timeframes and key performance indicators against which we will measure the effectiveness of investment.

About the strategy

The strategy in the latest Government Policy Statement for Housing and Urban Development sets the scene for investment within government’s role of delivering better housing support to those who need it.

Guided by a single investment objective to enable people in high housing need to have access to stable and secure housing, the strategy looks to target investment to specifically meet housing needs of those in high levels of housing deprivation and where the markets are not delivering, or unlikely to deliver.

Taking a tight focus means that investment won’t be directed towards outcomes where:

• it will have a general or limited impact
• affordability issues are better addressed through policy and regulatory responses.  

Through the actions, the strategy also explains how we'll go about meeting the investment objective so that:

• funding is targeted effectively
• investment is directed to those best placed to deliver with a greater focus on value for money
• investment discipline is improved.