Our response to the Spending Review

Chancellor Rachel Reeves, in her Spending Review delivered on 11 June, outlined several key initiatives aimed at addressing the UK’s housing crisis, with a particular focus on social housing and increasing the overall housing supply.    

Here are the key highlights from the 2025 Spending Review:  

Historic £39billion investment in affordable housing 

• The government has announced a £39billion Affordable Homes Programme over the next decade, marking the largest investment in social and affordable housing in 50 years; 
• This funding aims to support the construction of 1.5million new homes by 2035, with allocations to local authorities, housing associations and private developers.  

New social rent policy from 2026 

• Starting in 2026, social housing rents will be permitted to rise annually by inflation plus 1 per cent (CPI+1 per cent); 
• This policy is intended to provide housing providers with a predictable income stream to support maintenance and development of housing stock; 
• A consultation will be launched to assess the fairness of this rent policy, particularly for the 1.2million social tenants who pay full rent without government aid.  

Additional £10billion for housing development 

• An extra £10billion has been allocated to stimulate housing development in England, aiming to attract private investment through Homes England and facilitate the construction of hundreds of thousands of new homes.  

Planning reforms to accelerate housing delivery 

• The government plans to implement planning reforms to expediate the construction of new homes, including the use of ‘grey belt’ land, which refers to lower quality previously designated green belt land.  
• These reforms are expected to contribute significantly to meeting the 1.5million new homes target by 2029.  

Here’s what Elizabeth Froude, our Group Chief Executive had to say:  

“The Chancellor’s Spending Review sets out a once in a generation opportunity to reshape the future of social and affordable housing in this country.  The £39billion commitment to building 1.5million new homes represents the most significant investment in housing for decades and is a welcome recognition that a secure, quality home is the foundation of a thriving society.  

“At Platform Housing Group, we are particularly encouraged by the clarity this gives to the sector; long term investment, backed by policy reform, provides confidence and capacity we need to build, maintain and manage more affordable homes at pace and at scale.  

“The proposed CPI+1 per cent social rent policy from 2026 offers a predictable and sustainable approach, which – if handled with care – can support reinvestment into homes, services and communities.  We welcome the forthcoming consultation to ensure this approach remains fair for those residents who are not in receipt of housing support.  

“We are also pleased to see support for modernising the planning system and unlocking previously underused land for development.  Speeding up the process of getting homes built – without compromising on quality or community impact – is essential.   

“We also welcome the reaffirmed commitment to the Warm Homes Fund, which – alongside other funding streams – enables us to continue investing in improving the energy efficiency of existing homes.  These improvements are essential in enhancing quality of life for our residents, particularly those facing financial pressures, by helping to reduce energy costs and create warmer, healthier living environments.  

“We stand ready to play our part.  The need for truly affordable homes has never been greater.  We will continue to champion inclusive growth, work with our partners in local government and beyond, and ensure that every pound invested delivers meaningful impact for the people and places we serve.”  

Photo caption : Elizabeth Froude, Group Chief Executive of Platform Housing Group