Thousands of social and affordable homes to be built across England in £39bn plan

Thousands of social and affordable homes to be built across England in £39bn plan

The government has unveiled plans for building 70,000 new social and affordable homes across England over the coming decade in an effort to tackle the ongoing housing shortage. Funding has been allocated to regions including Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England, and Liverpool, alongside a £6 billion investment dedicated to London. This announcement represents the initial phase of a broader £39 billion programme aimed at constructing 300,000 social and affordable homes nationwide.

Housing advocates have responded positively to the announcement but caution that the scale of the plan still falls short of the actual demand. Some Conservative figures have criticized the move, labeling it an “unfunded spending commitment.” London is set to receive the largest portion of funding; however, specific numbers for how many homes are expected to be built in the capital have not been disclosed. Officials indicated that more than £16 billion remains to be allocated to projects outside London as the programme progresses.

One individual’s experience highlights the urgent need for improved social housing options. Natasha, a 22-year-old mother, spent the late stages of her pregnancy and the early weeks with her newborn son living in a hotel. Describing the accommodation as a “prison,” she shared concerns about the safety and unsuitability of her living environment, including shared kitchen spaces with dozens of other residents and poor hygiene conditions. Such stories underscore the pressures faced by the 1.34 million households currently on social housing waiting lists, according to the latest government figures from March 2025.

The housing secretary, Angela Rayner, affirmed that some of the new homes will be constructed by councils, with efforts underway to revive council-led housebuilding. This aligns with previous commitments from regional leaders such as Andy Burnham, who promised “the biggest council house building programme since the post-war period.” Although the government plans to provide extra funding and expertise to councils, clarification on the distribution of funds between council homes and housing associations has not yet been provided. Historical data reveals a significant decline in council housebuilding compared to the 1950s, when nearly 200,000 new council homes were built annually. In the current financial year, over 12,000 social rent homes were constructed, the highest since 2013-14, but this still falls far short of the estimated 90,000 needed annually to keep up with demand.

Social housing, which offers affordable accommodation through social landlords such as local authorities and housing associations, includes both affordable rent and low-cost home ownership options like shared ownership. Charlie Berry, a policy manager at the charity Shelter, described the new announcement as a “significant improvement,” but emphasized that it is “not near the level we need to truly tackle that backlog and end homelessness.” While the Labour government has committed to building 1.5 million homes by 2029, analysis of official Energy Performance Certificate (EPC) data suggests that current building rates are lagging behind the target, with around 203,000 new homes delivered in the latest 12-month period, short of the 300,000 annual target needed to meet the five-year plan.

Critics from the Conservative Party have dismissed the announcement as a “sleight of hand,” pointing out that homes may not be completed until 2039. The shadow housing secretary, Sir James Cleverly, criticized the reduced scale of social rent homes compared to previous programmes and accused the Labour government of scaling back affordable housing efforts. The Conservatives have also proposed ending social housing provision for foreign nationals in England if elected, estimating that this could free up over 228,000 homes for British families. Additionally, the Reform party has echoed calls to prioritize British-born workers under age 35 for social housing allocation. However, Shelter has warned that existing access rules for social housing are already strict and said that these proposals fail to tackle the root causes of the housing shortage

Read the full article from The BBC here: Read More