Affordable housing plays a key role in well-being and sustainable development. The energy efficiency and sustainability performance of these houses support environmental sustainability and reduce their operational cost and energy consumption. Furthermore, enhanced energy efficiency is a significant factor in affordable houses in the fight against fuel poverty. This paper underlines the importance of sustainable affordable houses for reduced life cycle costs and enhanced welfare and well-being of its residents. Based on an in-depth literature review, considering the entire life cycle of affordable houses, this paper aims to investigate usage of all BIM dimensions and their application areas for enhancing sustainability and affordability of affordable housing as a key for effective housing policies. The integrated usage of Building Information Modelling (BIM) and energy simulation software has the potential to add value to the affordable houses as this integration supports energy savings and enhanced sustainability performance throughout the building's life-cycle. This paper highlights BIM’s usage for energy and facility management. Furthermore, this paper emphasises the importance of the policies for effective solutions to the housing problem and recommends holistic policies based on a systematic and interdisciplinary approach to the housing problem. This paper highlights the political economy of affordable housing policies and suggests affordable housing policies request usage of BIM throughout the entire life cycle of affordable houses.