No more waiting for government – it’s time to get on with it

But regarding funding, rents, standards and Section 106, there is now a stronger sense of direction. With bidding for the £39bn Social and Affordable Homes Programme (SAHP) set to open this month, housing providers have greater visibility over the development policy environment in which they will operate for the remainder of the decade.

That greater certainty matters. The sector is still managing the cumulative effects of past policy shifts on long-term business plans, alongside rising costs and higher expectations. Stability over rents and capital funding provides the foundation required to make confident, long-term investment decisions.

“Providers must manage carefully the tension between reinvesting in existing homes, building new ones and maintaining affordability for customers”

There is no longer any need to wait for further guidance from Whitehall – it is time to focus on doing as much as we can to deliver for existing and future customers.

We don’t have to look far for challenges to address. Demand for truly affordable housing continues to surpass supply, temporary accommodation costs are rising sharply for local authorities and the condition of existing homes has rightly become a central issue for both the public and politicians.

At the same time, housing providers are contending with inflationary pressures, skills shortages and the practical difficulties of decarbonising an ageing housing stock.

The government has called for the housing sector to strike a compact, so here is what this looks like for Stonewater.

First, rents. Greater predictability and the phased return of rent convergence from April 2027, with increases of up to £1 per week and then £2 from April 2028 for homes below formula rent, is welcome, but does not eliminate the financial trade-offs facing housing providers.

The legacy of the 2015 rent reduction continues to shape balance sheets and borrowing capacity across the sector, and providers must manage carefully the tension between reinvesting in existing homes, building new ones and maintaining affordability for customers.

Second, housing standards. The revised Decent Homes Standard, incorporating Minimum Energy Efficiency Standards, unites requirements that were previously dealt with separately. Expectations regarding damp and mould, thermal comfort and the condition of components are now set out more clearly, providing a single reference point for both customers and providers.

These reforms are overdue and right. But meeting higher regulatory and quality expectations inevitably carries additional cost.

As standards rise, providers must balance the resources devoted to service delivery with the significant capital investment required to modernise and decarbonise existing homes. Clearer regulation supports better outcomes, but it also reinforces the need for disciplined financial management and long-term planning.

“The sector’s credibility depends on our ability to show that clearer policy frameworks lead to better outcomes for customers and communities”

Third, Section 106. This remains a vital, though imperfect, part of the affordable housing system in England. The government’s new roadmap, intended to unlock uncontracted homes and reduce negotiation friction, recognises that delays and complexity have limited delivery. Its success will depend on how consistently it is implemented and how confidently all parties engage with it.

At Stonewater, to show we can convert funding certainty into consistent delivery, we will focus in the following areas to deliver for our customers.

We will concentrate on long-term, land-led development aligned with SAHP delivery, working more closely with local authorities as they explore new ways to increase supply – including the higher threshold for opening a Housing Revenue Account – and planning investment in existing homes in a way that co-ordinates Decent Homes and energy efficiency requirements.

We will also continue to be more considered about the homes we acquire through Section 106, prioritising quality and long-term sustainability over short-term volume.

None of this happens in isolation. The sector’s credibility depends on our ability to show that clearer policy frameworks lead to better outcomes for customers and communities. Families waiting for a secure home, councils struggling with the cost of temporary accommodation and people living in homes that require improvement all have a stake in how this period unfolds.

The government framework is not perfect, and challenges remain. However, the direction is clearer. The task now is to use that clarity to make progress steadily and credibly at scale, in a way that strengthens trust between government, providers and customers alike.

Jonathan Layzell, chief executive, Stonewater