What does the Spending Review offer for the North?

It was also fantastic to see that the £13.2bn Warm Homes Plan has been safeguarded in the Spending Review, and crucially, that it will provide five years of certainty. The NHC has long campaigned to improve the energy efficiency of our homes; the North of England has some of the oldest, coldest homes in Europe. 

Our Warm Homes, Green Jobs research report set out the need for longer-term certainty for the retrofit supply chain. We know this will play a critical part in creating good green jobs and supporting nearly a million households in the North who are living in fuel poverty.

“For many years, the NHC has highlighted that one-size-fits-all solutions do not work for the North. Our challenges and opportunities often differ from those of London and the South East”

For many years, the NHC has highlighted that one-size-fits-all solutions do not work for the North. Our challenges and opportunities often differ from those of London and the South East, and of course, there are significant variations across the North itself. 

Our research and feedback from members have shown that the application of narrow value-for-money criteria have been a barrier to government funding delivering the solutions Northern communities need, especially in areas with lower land values. The chancellor has put forward changes to the Green Book, which should make a huge difference – with the introduction of place-based business cases being particularly welcome.

The real test, however, will be seeing how effectively the updated rules are implemented in the design of new funds.

The Spending Review has maintained the momentum of proposals set out earlier in the year in the English Devolution White Paper. The proposals set out more local control for key areas of funding, such as affordable housing and retrofit. This is something we have been calling for.

So far, devolution has been positive for the housing sector in the North – with increased collaboration both within and outside the sector through the housing partnerships model being a particular highlight. A recommitment to integrated settlements for a further four Northern areas from 2026-27, a commitment to expand the scope of integrated settlements, and funding to support areas on the Devolution Priority Programme are all positive developments in the Spending Review. 

The Spending Review also offers hope for our local-authority members. One of their biggest challenges is supporting rising numbers of households in need of temporary accommodation – with a yearly increase of 15% in the North. The £950m Local Authority Housing Fund to support provision of temporary accommodation, £100m Homelessness Prevention Fund and longer-term investment in increasing social housing are all welcome solutions for local authorities and the communities they serve.

However, the scale of the temporary accommodation crisis cannot be overestimated, so the impact this package of measures will have remains to be seen. The lack of action on Local Housing Allowance and how this will impact people at risk of homelessness are also a big concern.

“So far, devolution has been positive for the housing sector in the North – with increased collaboration both within and outside the sector through the housing partnerships model being a particular highlight”

While there is a great deal to be pleased about, the picture on regeneration is less clear.

There are opportunities for up to 320,000 homes in the North on brownfield land, but we await detail on what funding will be available to unlock these sites.

Regeneration more broadly is a huge issue for the North, with over 126,000 social homes reaching the end of their life, and more than a quarter of private rented homes in the North not meeting the Decent Homes Standard. The government has taken some steps towards regeneration, such as investing in infrastructure in up to 350 deprived communities, and earlier in the year in its Plan for Neighbourhoods, but nothing specific has been announced yet to support housing-led regeneration. 

The AHP currently offers some flexibility to use grant funding to replace homes that are no longer fit for purpose, and this must be continued if it is to deliver across the country. We will also explore whether there is scope for funding for regeneration to be part of integrated settlements. This would be a welcome move, but it would be important that areas at the start of their devolution journey did not lose out.

At the NHC, our aim is to support members to ensure that everyone in the North has a safe, warm home they can afford, in a place they’re proud of. The Spending Review has certainly laid some firm foundations to work towards this, and we look forward to working with the government and our members to build on those foundations.  

Tracy Harrison, chief executive, Northern Housing Consortium