Homes England data reveals annual social rent starts up 43% but zero First Homes completed

The figures come as the government has set a target to deliver at least 180,000 social rent homes through a new rebranded AHP.

The figure for annual completions in the Homes England data was 28,370. This is an increase of 15% on the previous year and represents 77% of all completions.

Social rent again saw an increase of 33% to 5,732, and affordable rent rose 15% to 10,775.

Intermediate affordable housing scheme completions increased by 13% to 11,883.

For these, 62% were delivered by the AHP 2021 to 2026, 31% by the Shared Ownership and Affordable Homes Programme, 4% by the SLP, and 2% by the HBF.

The were zero First Homes completed over the financial year, after 516 were completed in 2023-24.

At a regional level, the North West (20%), followed by the South East (14%), and the East of England (13%) saw the most new starts.

For completions, the North West (22%) led the way again, followed by the East of England (14%) and the West Midlands (13%).

In response, John Guest, national head of social housing at RSM UK, said: “While it is encouraging to see a marginal increase in the number of affordable housing starts, it’s clear to see the pressure facing the sector.

“However, off the back of the government’s Spending Review, which saw the biggest investment in affordable and social housing for years, there is some cautious optimism that this will help drive activity, ensure viability of projects and incentivise businesses to build. 

“There’s also a general feeling that government investment will help to unlock additional funding from private investors, as the government’s funding will only go so far and demand for affordable housing presents a key opportunity for investors."

Mr Guest believes private investors could help create a multiplier effect by injecting capital into development projects, enabling landlords to scale up construction, and leverage public funding more effectively, while improving existing stock.

Homes England has previously refused to publish comparative grant data on First Homes, after a Freedom of Information request by Inside Housing, as it believes doing so could cause reputational damage, put development at risk and inflate prices.

The policy offers first-time buyers a minimum discount of 30% against market value limited at properties below £250,000 – or £420,000 in Greater London. In some areas, the government will allow minimum discounts to be raised to 40% or 50% if councils can demonstrate a need for this.

The government has said that First Homes should account for at least 25% of affordable housing units delivered by developers through planning obligations, chiefly through Section 106.