£39bn boost for affordable homes programme
Following today’s Spending Review where affordable housing has been allocated £39bn over the next 10 years, here are some thoughts from the Industry.
Alex Slater, Rightmove’s housebuilding expert:
“Today’s news is a really positive boost for the housebuilding industry and a step in the right direction. There aren’t enough affordable homes, so we welcome any initiatives that will help the sector to deliver more of these homes to market. What will be key is making sure more affordable homes are delivered in the right places, where the gap in supply and demand is greatest. Hopefully this is one of many steps to come to support the delivery of much needed homes across the country.”
Dr Neil Cobbold, Commercial Director of global proptech specialists, Reapit:
“It is encouraging to see the Chancellor commit £39bn to deliver affordable housing over the next 10 years. The investment in training and apprenticeships for builders and electricians is also welcomed, along with £10bn for Homes England. We hope these funds will help build the 1.5 million new homes the government has committed to delivering over this parliament.
“However, it is disappointing to see no additional funding outlined for the civil courts and tribunal system, which need long-term investment, especially with the Renters’ Rights Bill due to see more tenants and landlords in court and tribunal cases in the following years.”
Daniel Austin, CEO and co-founder at ASK Partners:
“The Chancellor’s commitment of £39bn to affordable and social housing is a long-overdue but hugely welcome intervention. This funding, if deployed effectively, could mark a turning point in tackling the UK’s deep-rooted housing crisis. Crucially, investment must now be matched by urgent planning reform, proper resourcing of local authorities, and meaningful support for SME housebuilders.
“Labour’s target of 300,000 homes a year has been pledged before but never met. To succeed, this government must take bold, pro-growth steps, freeing up brownfield sites, embracing technology in planning, and ensuring lenders support a broader range of borrowers. Significant investment in transport networks will encourage developers to build near new transport hubs, while more social housing will take pressure off the private rented sector and help balance out prices.”
Sarah Rowe, Partner and Head of Social Housing at leading law firm Freeths:
“What has been announced today is a 50% uplift on the size of the previous programme and for the first time in living memory will provide ten years of certainty. This alongside the rent settlement at CPI+1% for the same period is the long-term reliable subsidy that the sector has been calling for, for a long time.
“The devil as always will be in the detail in terms of grant rates, whether there will be a focus on social rent, where the shortage is acute, or any monies available for S.106 units where the market is in dire straits which is ultimately having a knock-on effect to the overall delivery of housing.
“The hard work begins now. Securing the partnerships needed to support the delivery afforded by the Affordable Homes Programme will be key to this. Partnerships was a key topic at UKReiiF a couple of weeks ago and I am sure will be on the agenda at Housing 2025 at the end of June.”
Timothy Douglas, Head of Policy and Campaigns at Propertymark:
“Investment in rejuvenating places up and down the country is welcome and ensures that people live, work and want to move into vibrant communities. Propertymark also welcomes additional funding for affordable and social homes as we know this will help meet the UK Government’s ambitious housing target and have the knock-on effect of bringing down the cost of renting in the private rented sector. Planning reforms must also work alongside a housing strategy which is much anticipated to be published by the UK Government to ensure we are building the right homes in the right places, and we can meet housing need up and down the country.”
Allison Thompson, National Lettings Managing Director, LRG (Leaders Romans Group):
“To ease pressure across the housing system, the government must do more to keep existing rental homes available, not just promise new ones. With a shortage of social rent properties, the private rented sector is doing the heavy lifting; however, with more tenants looking and fewer homes to let, that gap is becoming harder to fill. Councils in England spent £2.29 billion on temporary accommodation between April 2023 and March 2024, a 29% increase on the previous year. How much more will that rise while the government focuses on incentivising new development instead of supporting the homes we already have?
“At the same time, the cost of providing rental housing continues to increase. These pressures are ultimately felt by tenants, who are paying more and finding it harder to secure a suitable home. The Renters’ Rights Bill adds further uncertainty, and there is still no targeted support to help landlords upgrade properties ahead of the expected EPC changes in 2030. Without meaningful action to stabilise the private rented sector, the gap between housing need and housing access will only widen.”
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