Chancellor intervenes to solve housing crisis
June 11, 2025
The Chancellor is expected to announce the biggest boost to social and affordable housing investment in a generation, allocating £39 billion over the next decade as part of a new Affordable Housing Programme.
Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said:
“Rachel Reeves is backing up her planning reforms with the funding required to build the social and affordable homes the nation so desperately needs. This is a significant step in the right direction and demonstrates that both the Prime Minister and Chancellor have a long-term plan to fix the housing crisis and are not afraid to share the limelight for the good of the nation.”
The Government confirmed that spending on affordable housing will almost double by the end of this parliament. This will be further supported by a ten-year social rent settlement of CPI+1% beginning in 2026.
Rico Wojtulewicz, Head of Policy and Market Insight at the NFB and the House Builders Association (HBA), commented:
“This is fantastic news. It shows that the Government realises it must be a key player in addressing the housing crisis and building the social homes of tomorrow.
This decision benefits stakeholders across the industry. From contractors, who will deliver the social and affordable homes for councils, and housebuilders who have seen a drop off in housing associations purchasing their affordable homes. To Homes England, who are tasked with increasing affordable housing supply, and councils who are struggling to fund projects due to rising construction costs and viability challenges.
The UK has become an international outlier in the delivery of affordable housing, in part because it has become politically expedient to blame private developers for not building the homes that the public sector should have been building. We therefore hope that the Government now uses its New Towns and Compulsory Purchase Order (CPO) policies to build the social and affordable homes that councils chose not to build when interests rates were almost at zero.”
You May Also Enjoy
Building Site Accidents and Compensation: A Guide for Injured Workers
One mistake, one faulty piece of equipment and an unsafe working setup could cause a construction laborer much more than just aches and pains. One injury can result in medical costs, showing up on working days, reduced income and a path to long recovery. Under certain circumstances, the workers may be entitled to get compensation…
Read More 
First-Time Buyers: Why 4–5 Houses is the Sweet Spot
House hunting before the stress kicks in: Four to five houses is the sweet spot for first-time buyers Just 20% of us feel excited on a first property viewing, rising to 47% by viewings 4 to 5 There’s a U shape trajectory of excitement when it comes to the viewing process However, there is a…
Read More 
Two in five mortgage holders switched banks for a better mortgage deal
Of those who have a mortgage and switched banks, 41% did so to get a better mortgage rate deal and 30% did it to receive an incentive related to their mortgage Only 15% of people moving home switched their bank account during the move, while far more switched broadband (46%), energy (38%), and mobile phones…
Read More 
Housing market trends highlight a changing landscape
The housing market has seen many challenges across the year to date and, in many ways, the property landscape has been a year of two extremes already. At the start of the year, there was a quiet but optimistic consumer confidence in the air. However, with the global economy impacting almost every aspect…
Read More 
Breaking Property News 7/9/26
Daily bite-sized proptech and property news in partnership with Proptech-X. Privera uses Silex to provide its employees with a shared platform for source-based research Silex, the Swiss AI platform for legal research and productivity, today announced that Privera has selected and deployed Silex to support legal research and knowledge workflows across its nationwide real estate…
Read More
Mortgage rate rises loom as major lenders reprice
Major lenders have moved to increase mortgage rates to catch up with recent rises to swap rates, according to Moneyfactscompare.co.uk analysis. Over the coming days, more lenders are expected to review mortgage rates in response to higher swap rates, with HSBC and NatWest so far the biggest banks to increase rates since the start…
Read More