Government makes strides towards housing delivery – but must prioritise social rent

To make real progress towards necessary levels of social housing delivery, certainty via multi-year funding settlements such as this one is imperative. But enabling local authorities to build and retain housing stock is also vital if we are to make real inroads in delivering the level of social housing we need. 

With a long-term housing strategy due for publication, it’s high time to see ambitious and innovative measures to tackle the housing emergency. We outlined one model that can support this in our 2024 Foundations for the Future: a new delivery model for social housing report.

The model we propose is based on a one-off initial investment from central government, which local authorities then use to build homes for both social rent and market sale on land which is free at the point of use, such as local authority-owned land. With this eliminating, or at least significantly reducing, land cost, one expensive barrier to building new homes is removed.

Once built and sold, the receipts from market sale homes are retained and reinvested to build further homes for market sale and social rent. Our model not only promotes mixed-use development, but reduces reliance on continual funding from central government – providing a real benefit in a stretched fiscal environment.

“The model is based on a one-off initial investment from central government, which local authorities then use to build homes for both social rent and market sale on land which is free at the point of use, such as local authority-owned land”

Elsewhere, commitments for infrastructure provision are a real win. Neglecting to plan for homes and infrastructure in a strategic way can lead to adverse outcomes, with studies showing that a lack of integration in the planning process has led to an increase in the car dependency of new homes.

Research has shown that regional disparities in transport access affect not only access to the job market, but also to healthcare and education facilities.

For this reason, confirmation of £15.6bn for regional transport is a huge positive. As the government links planning reform to its growth agenda, this much-needed funding aims to boost access to the labour market and facilitate opportunities for growth through greater connectivity.

Introduced by the Conservatives in 2022, Labour pledged to double the amount invested in it to £13.2bn by 2029. The plan offers grants and loans for boiler and insulation upgrades, with the aim of improving energy efficiency and lowering heating costs. 

We recently signed a joint letter urging the government to not institute cuts to this programme. While this funding falls short of what is needed, it is a step in the right direction.

“It is not enough to just deliver housing – we must also ensure our existing stock is high quality and sustainable”

Notably missing from the announcement was a comprehensive injection of resources to support planning departments, which experienced one of the most severe cuts in terms of real-terms budget allocation from 2010 to 2020. 

Research shows that spending on planning is still down 40% from 2010-11, and this lack of resources has had a clear impact on the ability to recruit and retain skilled staff. Government data shows that 97% of local authorities reported planning skills gaps.

Access to design expertise is an integral issue, and there is clear evidence of need: 54% of local authorities reported skills gaps, specifically in urban design and architecture. We know that design skills are integral for the Government to achieve its ambition of delivering 1.5 million homes, and Skills England’s own analysis of current and future skills demands highlights that the government’s growth ambitions will require an increased number of architects.

With research by Checkatrade estimating that 1.3 million new skilled workers will be needed to deliver the Government’s housing and net zero targets, it is crucial that capacity within the construction sector is tackled as a priority. One way of doing this is through the use of offsite manufacturing methods, which can speed up construction and reduce onsite labour. To support this, the Government should examine the role of incentives to promote greater uptake.  

Additionally, to ensure we have a pipeline of architects to help deliver these ambitions, we need to support universities and open up the profession through different routes to the architects register. One way to do this is through providing additional spend for architectural education, while reinstating funding for Level 7 architecture apprentices of all ages would also make a significant difference.  

There were some clear signs in the Spending Review that the government is serious about meeting its target of 1.5 million homes in this parliament. But in a challenging fiscal landscape, it will be telling whether the settlements announced for social and affordable homes are able to meet the scale of need we’re facing.

This is a promising step. Architects are ready to work with the government to make its growth ambitions a reality.

Jack Pringle, chair, Royal Institute of British Architects (RIBA)