‘We stand ready to deliver’: sector responds to government’s new five-step housing plan

Kate Henderson, chief executive of the National Housing Federation, said it is “enormously welcome” to see that the 60% social rent target of the new Social and Affordable Homes Programme will be for social rent, “offering real hope to those at the sharp end of the housing crisis”.

Ms Henderson also praised the plans for a consultation on rent convergence.

“Historic differences in rent levels severely impact housing associations’ financial capacity to both invest in improving existing homes and to build new homes,” she said. 

She also welcomed the “clarity” on new requirements for housing associations’ homes and a “long-needed update” to decency and energy efficiency standards. 

“The quality and safety of residents’ homes is housing associations’ top priority, and the sector is spending record sums on repairs, improvements and maintenance to drive up standards,” Ms Henderson said. 

She added: “With more than 165,000 children living in temporary accommodation, these announcements couldn’t have come at a more urgent time. 

“We stand ready to deliver on this ambitious plan and will work in partnership with the government on the detail of these proposals to ensure that our sector has the financial confidence to deliver on this decade of growth and renewal.”

Gavin Smart, chief executive of the Chartered Institute of Housing, said that the changes “will see promising reform to the Right to Buy” and that the prospective introduction of rent convergence “will enable the sector to invest more in improving existing homes and building new ones”. 

He said the reforms to the Decent Homes Standard “will ensure that every resident can live in a home that is safe, warm, and fit for modern living”.

Mr Smart said: “The emphasis on building homes for social rent in the revamped Social and Affordable Homes Programme will ensure that the most affordable kind of housing is prioritised after years of uncertainty, and we look forward to working with colleagues in government and Homes England to support the finalisation of the programme.”

He welcomed the three-year transition period for the Conduct and Competency Standard, “which reflects the practical realities housing providers face and aligns with the recommendations set out in our consultation response”.

“This approach will give landlords time to invest in their workforce and build capacity without compromising service delivery while we make this important shift,” Mr Smart added. 

Sara Roberts, chief operating officer at Kingdom Academy, said that while the training provider welcomes the announcement of a timeline for the standard, “the long lead time could mean that an impact isn’t seen until easy 2030s”. 

“This shouldn’t stop social housing organisations planning and implementing the professionalisation standards into their workforces, as their staff need the skills and confidence now,” she said. 

Tracy Harrison, chief executive of the Northern Housing Consortium, said the package of announcements has “struck a balance between delivering much-needed new social housing and ensuring the quality of existing homes”. 

She said: “We especially welcome the government retaining flexibility in the Social and Affordable Homes Programme for funding to be used to replace existing homes.

“Housing-led regeneration has a significant role to play in making sure everyone in the North has access to a safe, warm home in a place they’re proud of.”

Ms Harrison welcomed the news that the new Decent Homes Standard will be applied to the private rented sector, as well as the social rented sector, “with over a quarter of private rented homes in the North not meeting the current standard”. 

She added that the consortium is pleased the government is proposing a 10-year implementation period. 

“We are optimistic that the combination of confirmation of quality standards and long-term rent certainty will offer members the stability they need to plan investment in homes and places,” she said. 

Alison Inman, chair of Tpas, said: “This is another huge day for the sector, with plenty of news that will be welcomed by both tenants and landlords.

“The deputy prime minister… issued a rallying cry to the sector to unleash a social rent revolution. Tpas knows that when tenants are influential, social housing works better.”

She said Tpas, which focuses on improving tenant engagement in social housing, “will play our role in ensuring that tenants, landlords, contractors and government can work together to shape policy and deliver the new homes we desperately need”.

Ms Inman “cautiously” welcomed the consultation on rent convergence.

“A balance needs to be struck between ensuring tenants living in similar properties are not being charged wildly different rents, and protecting tenants where household budgets are already being stretched,” she said. 

Clare Miller, chief executive of Clarion Housing Group and vice-chair of the G15, praised the “long-term” certainty of the 10-year settlement, backed by a £39bn programme.

“We’re pleased to see a more flexible approach to grant funding. The move away from fixed or capped grant rates, with each scheme assessed on its own merits, reflects a more realistic understanding of the costs involved in delivering different types of homes in different parts of the country,” she said. 

Ms Miller welcomed the introduction of the low-cost loans. However, she warned that it is “important to recognise the growing cost pressures facing the sector”. 

“New requirements including on electrical safety testing, the expansion of the Decent Homes Standard, emergency repairs for vulnerable residents, and the implementation of Awaab’s Law are all vital steps that we fully support. 

“But these come at a time when the sector is already under financial strain, and we need to ensure that new investment isn’t eroded by rising overheads,” she said. 

Adam Hug, housing spokesperson for the Local Government Association, said: “The government has rightly listened to the concerns of councils, and directly responded to the issues that the LGA has raised – relating to the need to strengthen the financial sustainability of Housing Revenue Accounts, reform Right to Buy, increase funding for social and affordable homes and support a council housebuilding revolution.”

Mr Hug added that clarity on the future regulatory environment and related expenditure requirements for stock-holding councils is also “essential to support long-term investment planning for both existing and new homes”.

Catherine Ryder, chief executive of PlaceShapers, said the body “strongly welcomes” the emphasis on social rent in the new programme.

She added: “Our members are ready to play the fullest role possible in the decade of renewal for social and affordable housing.”

Fiona Fletcher-Smith, chief executive of L&Q, said the long-term commitment to social rent “gives our sector the confidence it needs to deliver the building boom of social homes this country so urgently needs”.

Paul Dolan, chief executive of Riverside, said social housing is “one of the most important ways of cutting homelessness in England”, with 32,630 households a year having their homelessness ended by it in 2023-24.

“This delivers long-term certainty to the housing sector to help unlock additional private sector investment to help build even more social and affordable homes,” he said. 

Greg Reed, chief executive of Places for People, said that the government is “right” to focus on “rebuilding our sector’s capacity to borrow and invest”.

However, he highlighted the importance of supported housing, news of which is expected later in the year. 

Mr Reed said: “We now eagerly await government’s plans for supported housing, and these must be set out in its long-term housing strategy later this year. 

“Communities only thrive when they support everyone – including older people, those homeless, and people fleeing domestic abuse. 

“We’ll continue to push for urgent investment in these vital services and do our bit by building bespoke supported housing schemes in priority regions.”

Andrew Carter, chief executive of Centre for Cities, welcomed the social and affordable homes target, but said it “matters where they’re built”.

“As Centre for Cities’ evidence shows, the housing crisis is most severe in big cities – where rents are highest, waiting lists are longest, and demand far outstrips supply,” he said. 

Mr Carter said that to tackle the UK’s housing need and unlock growth, the government “must focus this investment in and around cities like London, Bristol, Manchester and Leeds – where the demand is greatest and the returns will be too”.

Mayor of London Sir Sadiq Khan welcomed the funding settlement for London as “the biggest and longest the capital has ever received”.

“After 14 years of underinvestment and indifference towards social and affordable housebuilding under the previous government, London now has an opportunity to deliver more of the homes Londoners desperately need as we work to build a better, fairer London for everyone.”

Grace Williams, deputy chair and executive member for housing and regeneration at London Councils, said the investment “will support us to build more of the social and affordable homes that our residents are crying out for”.

“We welcome the long-term certainty that this 10-year programme provides, alongside the additional funding flexibilities for Right to Buy receipts,” she said.