The government has committed to investing £39bn in social and affordable housing in its Spending Review.
Chancellor Rachel Reeves said this represents “biggest cash injection into social and affordable housing in 50 years”.
The cash will be allocated to local authorities, private developers and housing associations over 10 years, meaning it represents a total of £3.9bn per year. It should be noted £2.1 billion per year was already allocated in the form of affordable housing grants, so new funding represents an additional £1.8bn per year.
Chris Harris, chief operating officer at Dandara, said: “Today’s Spending Review delivers much-needed long-term commitments to infrastructure and housing, offering a critical opportunity to reform the systems that underpin delivery.
“The £39 billion investment in affordable and social housing is especially encouraging, signalling serious intent to tackle supply challenges across all tenures. For developers such as Dandara – who partner across the private, affordable, and single-family housing sectors – this provides a solid foundation for ongoing investment and collaboration.”
Reeves also recommitted to a Labour pledge to spend £13.2bn over the next five years for the government’s Warm Homes Plan, a fund designed to install insulation, heat pumps and solar panels.
Trevor Wilkins, managing director at PAH Building & Construction, said: “Energy efficiency and achieving the UK’s net zero target were key commitments made by the government at the last election.
“With the average annual energy bill set to rise to £1,849 in England this year, it is now a national priority to support more households in upgrading their properties.
“That’s why protecting funding for the Warm Homes Plan is the right decision. Cutting it would have slowed our progress toward net zero and made the government’s goal of reducing energy bills by £300 by 2030 far more difficult to achieve.”
The government has committed to making the mortgage guarantee scheme permanent.
Meanwhile Reeves talked up Labour’s investment in training and apprenticeships, which aims to upskill over a million young people.
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