‘Historic’ turning point: sector reacts to Spending Review

Stephen Teagle, chief executive of partnerships and regeneration at Vistry Group: “This government has recognised that investing in housebuilding is critical to delivering economic growth, and is delivering on its promise to make a generational change in the delivery of affordable housing.

“We welcome the chancellor’s confirmation in the Spending Review of an unprecedented £39bn in funding for the next AHP, as well as a 10-year social rent settlement for registered providers and local authorities, which will have a transformative impact on our ability to deliver affordable and mixed-tenure homes up and down the country.

“It is great news for our partner housing associations and local authorities, great news for the economy and great news for the thousands denied access to an affordable home.”

Fiona Fletcher-Smith, chief executive of L&Q: “Today’s Spending Review is a clear signal that the government is serious about tackling the housing crisis and delivering the social homes we desperately need.

“The £39bn AHP, coupled with a 10-year rent settlement, gives housing associations like ours the certainty to plan, build and invest.

“We’re encouraged by the consultation on rent convergence and urge the government to bring it forward quickly. There is still detail to come. We hope to see further measures, including access to the Building Safety Fund, so we can continue investing in safe, warm and sustainable homes.”

Kate Henderson, chief executive of the National Housing Federation: “This is a transformational package for social housing and will deliver the right conditions for a decade of renewal and growth.

“This is the most ambitious AHP in decades and, alongside long-term certainty on rents, will kick-start a generational boost in the delivery of new social homes.

“Housing associations look forward to working in partnership with the government and with a deputy prime minister who has tirelessly championed social housing.”

Craig Moule, group chief executive of Sanctuary: “We welcome the government’s announcement of a £39bn investment in affordable and social housing in today’s Spending Review and, alongside the 10-year rent settlement, this gives us certainty and improves our ability to build new homes and invest in our existing properties.

“We also look forward to offering our views as part of the forthcoming consultation on how to implement social rent convergence.”

Pip Prongué, executive managing director of Wates Residential: “This long-term investment gives our existing partnerships with local authorities and housing associations the confidence and certainty needed to plan and deliver at scale. A 10-year funding horizon is a game changer, unlocking delivery and enabling us to think bigger and act bolder.”

Nicholas Harris, chief executive of Stonewater: “It is hugely reassuring to see long-term funding for affordable homes of £39bn.

“The new rent settlement at CPI + 1% gives us much greater financial stability and certainty, which will be vital when planning our long-term investments and goals.

“This gives us an assured income stream and will unlock significant capital investment that will help us to deliver new homes and support existing customers. We sincerely hope that the government stands by this settlement to provide much-needed certainty for the sector.”

Mark Washer, group chief executive of SNG: “Today’s announcement from the chancellor and deputy prime minister marks a turning point for social housing, creating the conditions for real progress.

“We now look forward to seeing the detail. In particular, the level of grant per home will be critical to meeting the very real challenges of viability. This investment lays a strong platform, and we’re keen to work with government to build on it – developing a sustainable model of residential development that puts social housing at its heart. 

“To truly seize this opportunity, ministers should convene a cross-sector taskforce to help shape the future of affordable housing and ensure we can keep delivering the homes our communities need long into the future.”

Priya Nair, chief executive of The Housing Finance Corporation: “The additional funding for the AHP, together with a clear commitment to long-term rent policy and rent convergence, signals a real shift in how our sector is valued – not just for its social impact, but for its vital role in driving economic growth.

“This is a positive step forward. Now, with renewed momentum and the right support, our sector is better positioned than ever to move from conversation to concrete action.”

Melanie Leech, chief executive of the British Property Federation: “With really tough choices to be made in the Spending Review, we are delighted that the government has prioritised the delivery of affordable and social housing and that it is investing significant additional sums to support a sector that has faced tough headwinds in recent years.

“The government has also delivered the 10-year rent settlement which we and the wider sector have been advocating for a long time. This is a significant step forward to help the sector to plan with more certainty and to help unlock the huge amount of long-term private capital, such as pension funds, that want to invest in genuinely affordable homes.”

Gavin Smart, chief executive of the Chartered Institute of Housing: “This represents a near-doubling of the previous programme, and sends a strong signal about the government’s commitment to tackling the housing crisis. Long-term funding of this scale has the potential to transform delivery – enabling the building of more homes for social rent, affordable rent and shared ownership.

“The accompanying 10-year rent settlement, with rents set at CPI + 1% from 2026, alongside a promised consultation on social rent convergence, should also significantly strengthen the financial capacity of social landlords and support new development.”

Greg Reed, chief executive of Places for People: “The bold package announced by the Treasury on Wednesday will be truly transformative for customers and communities.

“A decade-long rent settlement brings much-needed certainty for our sector, encouraging long-term investment and enabling sustainable financial planning. Alongside a new expanded AHP, this will drive real momentum to meet the government’s 1.5 million homes target.

“We also welcome the government’s consultation on social rent convergence, and believe that even more can be done to further strengthen the sector’s financial capacity.”

Nick Whitten, head of living research and strategy for EMEA at JLL: “The biggest spending commitment in decades towards delivering new affordable homes has to be welcomed at a time when the public purse is clearly more than a little stretched.

“The UK has fewer affordable homes now than it did 40 years ago, over a period in which the population increased by nearly 25% – that can’t be right. Replenishing the affordable housing stock is of national importance, especially when more than 1.3 million households are now on social housing waiting lists up and down the country.

“But the government needs to mind the construction skills gap if it is to deliver on this ambitious spending pledge.”

Robyn Lee, managing director at HSPG: “Tackling the chronic undersupply of affordable housing across the UK is no small challenge. We know that to meet the government’s ambitious housing targets, it will require stable, future-focused funding and policy frameworks to unlock delivery at scale.

“Today’s announcement of a £39bn investment in the AHP, alongside a 10-year rent settlement and a commitment to social rent convergence, is a bold and welcomed move. This is exactly the kind of long-term clarity the sector needs, but turning ambition into reality will now depend on partnerships and collaboration between the government and the sector.”

Kieron Williams, leader of Southwark Council: “The news of tens of billions for new genuinely affordable homes and a 10-year rent settlement for council housing are the kind of bold, radical action that our country so badly needed.

“This is a turning point for communities across our country. It will lift thousands of families out of homelessness and overcrowded homes, and will give councils the certainty and income we need to raise standards in our existing council homes, too.

“We are delighted that the government has listened to our call from our coalition of 112 councils. We can now work to turn the tide on the housing crisis that has held so many lives back.”

Suzanne Benson, head of real estate at Trowers and Hamlins: “The scale of the government’s £39bn commitment to social and affordable housing funding, combined with the certainty of a 10-year rent settlement, provides a real opportunity for growth across both the new-homes sector and for wider regeneration. It has the potential to stimulate housebuilding across the tenures and should provide a platform for creative partnership working between the private and public sector.”

John Bowker, chair of JV North: “Ultimately, meeting the housing crisis and building homes en masse require significant financial investment, and this is exactly what the government has recognised and acted on.

“The 10-year programme effectively means continuous market engagement bidding, which will negate, as much as is possible, volatile market conditions such as inflationary build cost pressures.

“This, along with certainty and a long-term plan, will cascade through the sector, giving boards confidence to approve schemes at a time when financial viability is under heavy scrutiny.

“Continuous funding will also avoid a housebuilding slowdown as we get circa two-thirds of the way into an AHP and enable larger-scale regeneration projects that make a significant impact to be delivered.”

Paul Dolan, chief executive of Riverside: “This is a historic and ground-breaking funding settlement for social landlords, one that was desperately needed, and will give Riverside and the wider sector greater certainty over funding throughout the next decade.

“We are pleased to see that the chancellor has agreed a 10-year index-linked rent settlement. Rent certainty is critical for us to be able to invest in our homes and services, now and into the future.

“The AHP marks a major step in boosting the amount of social housing, which is crucial if we are to cut the record number of homeless families living in temporary accommodation.

“We hope to see dedicated funding for urban regeneration play a significant part in the AHP. As an organisation, we have seen first-hand the difference regeneration makes in improving the quality of homes, neighbourhoods and the health and economic prospects of residents.”

Andy Hulme, chief executive of the Hyde Group: “This funding settlement is very much welcomed and will play a key part in enabling social housing charities to deliver more and better homes.

“We’ve consistently called for long-term funding for new homebuilding and certainty in rent policy to attract investment into the sector. It’s welcome that the government has engaged with the sector on these points and acted in the Spending Review.

“We look forward to engaging further with the government through the consultation on rent convergence, which is a critical part of making social housing financially sustainable, and is key to delivering new homes and improving existing homes.”

Patrick Hickey, director of the development consultancy at Make NW: “It’s important to recognise that this is the first ‘invest-to-save’ multi-year Spending Review Britain has seen since 2007, almost two decades ago, when chancellor Alistair Darling promised the government will borrow only to invest, and not to fund current spending.

“By announcing £113bn of new capital investment, and only increasing day-to-day spending by 1.3%, the chancellor is signalling that now is the time to back the builders to construct the next generation of housing, infrastructure and property and defence assets which Britain desperately needs.

“Now we are all keen to find out more about the detail of how this funding will be delivered. How is the new AHP funding going to be split between social rent, affordable and shared ownership? Will funding for the AHP be front-loaded to kick-start delivery of more homes in this parliament to help meet the government’s ambitious housing targets?”

Triya Maicha, partner at Devonshires said: “The shift to a ten year cycle is particularly promising and marks a significant change from previous funding programmes. The shorter funding programmes made it difficult for registered providers to invest in large scale developments where programmes extended beyond 3 to 5 years. "This welcome news will hopefully allow registered providers to plan, acquire and build at scale over a longer horizon. We are also expecting this to unlock further private investment into the sector, given the confidence in investment that naturally follows long term Government backing.”

Andrew Cowan, consultant at Devonshires, said: “With this spending commitment, the government has announced its challenge to the sector – this is a huge vote of confidence in the ability of the sector to deliver the government’s manifesto commitment.”

On scrapping the Vagrancy Act

Matt Downie, chief executive of Crisis, described the decision as “a landmark moment that will change lives and prevent thousands of people from being pushed into the shadows, away from safety”.

He added: “It is of great credit to the UK government that they have shown such principled leadership in scrapping this pernicious act.

“We hope this signals a completely different approach to helping people forced onto the streets, and clears the way for a positive agenda that is about supporting people who desperately want to move on in life and fulfil their potential. We look forward to assisting the UK government with their forthcoming homelessness strategy to do exactly that.” 

Emma Haddad, chief executive of St Mungo’s, said the act’s repeal could not come soon enough.

She said: “Right now, we are supporting thousands of people who are sleeping rough; everyone facing this issue has their own heartbreaking story to tell of how they ended up on the streets, from complex mental and physical health issues, to an increasingly unaffordable housing market.

“The answer is not to criminalise people for living on the streets, but instead to focus on tackling the health, housing and wider societal issues that are causing homelessness in the first place.”

Rick Henderson, chief executive of Homeless Link: “This is a historic and long-overdue reform, confirming at last that the government will remove a counterproductive and highly outdated law from our statute books.

“The homelessness support services we represent, many of whom work every day with people who regularly sleep rough, know the focus needs to be on supporting people into a secure home while addressing their other needs, not on sanctions and prosecution.

“We welcome the government’s delivery on a long-standing promise to repeal the Vagrancy Act. We also salute campaigners, activists and politicians from all parties who have backed the Scrap the Vagrancy Act campaign over the years.

“Ministers’ explicit pledge that there will be no equivalent powers criminalising rough sleeping in the new Crime and Policing Bill is also welcome. However, we will carefully analyse the amendments that focus on rough sleeping, and assess how these may impact on those sleeping rough and the services who support them.”