We welcome Budget investment but homes delivered will be the real test
We have welcomed the Government's additional £1 billion investment in social and affordable housing but are stressing that its success must ultimately be measured in homes delivered.
The funding announced in the Budget takes the value of the ten year Social and Affordable Homes programme to more than £40 billion.
The Budget also included measures to support council housebuilding through preferential borrowing, alongside greater control over investment for mayors and regional leaders.
Further announcements included an additional £432 million to tackle rough sleeping, taking the local investment behind the Government's programme to £874 million, and confirmation of how Social Rent convergence will be introduced.
From April 2027, registered providers will be permitted to increase rents on qualifying Social Rent homes by up to an additional £1 a week above the existing CPI plus one per cent settlement. This will rise to a maximum of £2 a week from April 2028 until those rents reach the Government's formula level.
The Government estimates that rent convergence will generate an additional £2.7 billion for private registered providers over the ten year rent settlement, increasing their capacity to invest in new and existing homes. Landlords will retain the flexibility to apply lower increases or freeze rents.
The wider Budget also included £100 energy payments for households in Council Tax bands A to D, alongside further measures intended to reduce household energy costs.
We are already a Strategic Partner with Homes England through the Social and Affordable Homes Programme.
Emma Palmer, our Chief Executive said: "This is welcome news. Our Strategic Partnership with Homes England has already given us greater confidence to plan ahead, and today's additional funding creates an opportunity for the sector to go even further.
"There are organisations across the sector with schemes ready to move. The priority now must be to turn this funding into good quality, genuinely affordable homes as quickly as possible for the people and families who need them.
"Funding alone does not build homes. We also need land, timely planning decisions, the right infrastructure and a skilled and resilient supply chain. The detail of how and when this additional investment becomes available will therefore be important.
"The measures designed to help councils borrow and build are also welcome. Councils and housing associations each have a vital role to play and we will achieve far more by working together than by working in isolation. Giving mayors and regional leaders greater flexibility should also help investment respond more closely to what individual places and communities need.
"We welcome the further support to tackle rough sleeping. It is the most visible and devastating expression of the housing crisis, but helping someone off the street is only the beginning. Lasting change requires suitable, secure homes alongside properly coordinated support that helps people rebuild their lives.
"The longer term rent settlement and confirmation of rent convergence provide greater certainty for housing providers, allowing us to plan investment in existing homes and new supply. However, we must never lose sight of the fact that rent is paid by our customers. Any decisions must be approached responsibly, with appropriate support for people who are struggling and a clear connection between the income received and better homes and services.
"The measures to help households with energy costs will provide some welcome short term relief. The longer term answer must include continued investment to warmer, more energy efficient homes that are more affordable to run.
"At Platform, we are ready to play our part. We will continue working closely with government, Homes England, mayoral combined authorities, councils and our other partners across the Midlands to unlock sites and provide more homes for affordable rent and shared ownership.
"Ultimately, the test of today's announcements will be whether they result in more people having the security, stability and opportunity that come with a good home they can afford."
We will now examine the detailed Budget documents and work with our partners to understand how the measures can be translated into deliverable schemes across the Midlands.
Long term funding certainty, appropriate grant levels and effective collaboration would be essential to increasing housing supply while continuing to invest in the quality, safety and energy efficiency of existing homes.
Photo caption : Emma Palmer, Chief Executive at Platform Housing Group.