{"id":780204,"date":"2025-03-25T10:27:53","date_gmt":"2025-03-25T10:27:53","guid":{"rendered":"https:\/\/www.architectsjournal.co.uk\/?p=780204"},"modified":"2025-03-25T11:11:03","modified_gmt":"2025-03-25T11:11:03","slug":"affordable-and-social-homes-get-2bn-boost-from-rachel-reeves","status":"publish","type":"post","link":"https:\/\/www.architectsjournal.co.uk\/news\/affordable-and-social-homes-get-2bn-boost-from-rachel-reeves","title":{"rendered":"Affordable and social homes get \u00a32bn boost from Rachel Reeves"},"content":{"rendered":"

The chancellor is due to make the funding commitment tomorrow as part of her Spring Statement as part of government efforts to meet its 1.5 million homes target in the face of record low approvals<\/a> for new homes last year.<\/p>\n

The cash injection will go toward building 18,000 affordable and social homes before 2029, the government said in an announcement, with most construction of those homes to get under way before 2027. However, it is unclear how the money will be allocated across the country.<\/p>\n

Angela Rayner, the housing secretary, had long promised<\/a> the biggest expansion in social housing in a generation since the Labour party was elected to office last July \u2013 an ambition that has been called into question by a \u00a32.2 billion black hole<\/a> in local authority housing and revenue accounts.<\/p>\n

The built environment profession has also warned that, without funding for affordable and social homes specifically \u2013 particularly council-backed housing, the government would not be able to meet its 1.5 million new homes target for this Parliament.<\/p>\n

Rayner said in a statement: \u2018Everyone deserves to have a safe and secure roof over their heads and a place to call their own. But the reality is that far too many people have been frozen out of home ownership or denied the chance to rent a home they can afford, thanks to the housing crisis we\u2019ve inherited.\u2019<\/p>\n

She continued: \u2018This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5 million homes and the biggest increase in social and affordable housing in a generation.\u2019<\/p>\n

Responding to the announcement, SME house building developers and housing associations said they welcomed the cash injection into the affordable housing sector. However, they argued the monies would need to address the key issues around viability \u2013 particularly for SME house builders in London, where land values are highest.<\/span><\/p>\n

Paul Rickard, chief executive of Pocket Living, said<\/span>: \u2018While this is welcome news, we await further details on the allocation between London and the rest of England, especially given the crisis in housing starts in the capital and with the shortage of affordable homes.<\/p>\n

\u2018Tackling the viability issues and getting housing schemes from the point of planning consent to a start on site remains one of the greatest challenges that the housebuilding industry faces.\u2019<\/p>\n

Rickard added that more needed to be done by government, including longer-term funding to support the SME house building sector \u2018before it is too late\u2019.<\/p>\n

Olivia Harris, chief executive of Dolphin Living, said of the announcement: \u2018This additional funding is very much welcome and needed, especially given the huge viability challenges many affordable housing developers are facing, which is stymying the delivery of much-needed new housing.<\/p>\n

She continued: \u2018[But] if the government really wants to rapidly increase supply, then we also need to have a serious debate on affordable tenure and in some cases switch to intermediate affordable housing, in addition to this extra funding, to really start getting those affordable housing consents converted into building activity.\u2019<\/p>\n

Kate Henderson, chief executive at the National Housing Federation, said the cash boost would \u2018prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced\u2019 at an unknown date.<\/p>\n

Henderson continued: \u2018Social housing is the only secure and affordable housing for families on low incomes and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness.<\/p>\n

\u2018Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.\u2019<\/p>\n

Last month, the government announced a \u00a3350 million top-up<\/a> to its affordable housing fund, adding to the \u00a3500 million pot already pledged in October\u2019s budget.<\/p>\n

Most of the new funding \u2013 \u00a3300 million \u2013 will be used to boost the government\u2019s affordable homes programme and is expected to fund\u00a02,800 additional homes, including more than half for social rent.<\/p>\n

\n

Comment<\/span><\/h3>\n

Miranda MacLaren, director at Orms<\/em><\/strong><\/p>\n

The \u00a32 billion allocation to the affordable housing fund is a positive step but falls short of past investment, such as \u00a33.7 billion in 2009-10. Years of reduced funding have contributed to the current housing crisis, with 160,000 children in temporary accommodation as of January 2025. The financial burden is significant\u2014housing a family in a guesthouse costs up to \u00a32,383 a month, nearly five times the cost of social housing.<\/p>\n

In 2023\/24, councils in England spent \u00a32.3 billion on temporary housing, a 29% increase from the previous year, with \u00a3780 million going to unsuitable emergency B&Bs and hostels. Without intervention, emergency housing costs could reach \u00a31.2 billion annually by 2027.<\/p>\n

To curb costs and improve housing stability, councils need investment in emergency and long-term affordable housing. Retrofitting vacant office spaces could provide a sustainable, cost-effective solution to address the crisis.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The chancellor is due to make the funding commitment tomorrow as part of her Spring Statement as part of government efforts to meet its 1.5 million homes target in the face of record low approvals for new homes last year. The cash injection will go toward building 18,000 affordable and social homes before 2029, the …<\/p>\n","protected":false},"author":131789,"featured_media":780207,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"ep_exclude_from_search":false},"categories":[681],"tags":[1679,101091,100535,5401],"yoast_head":"\nAffordable and social homes get \u00a32bn boost from Rachel Reeves<\/title>\n<meta name=\"description\" content=\"Chancellor Rachel Reeves will set aside \u00a32 billion for affordable and social homes in her spring spending review, the government has said\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.architectsjournal.co.uk\/news\/affordable-and-social-homes-get-2bn-boost-from-rachel-reeves\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta 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