Government pledges £10 billion for housing revival
The UK government has announced a £10 billion funding commitment to spearhead the “biggest council housebuilding revival in decades,” with plans to deliver 70,000 homes across England, reports BritPanorama.
This initiative will involve 33 ‘strategic partners,’ including councils, housing associations, and other providers, with six local mayors outside London set to receive approximately £2.5 billion. The announcement was made by the Ministry for Housing, Communities and Local Government (MHCLG).
These funds are part of the government’s £39 billion Social and Affordable Homes Programme (SAHP), a ten-year plan initiated in 2025 by Sir Keir Starmer and Rachel Reeves, alongside housing secretary Angela Rayner.
Angela Rayner emphasized the urgency of the housing crisis, stating, “Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live.” She added, “That’s why the Prime Minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”
As of the latest statistics, around 134,000 households, including 176,130 children, reside in temporary accommodation, while over 1.3 million households are on their local authority’s waiting list for social housing.
The SAHP aims for 60 percent of the homes built to be for social rent, representing the most affordable housing option available, typically costing 50 to 60 percent of local market rates for long-term tenancies.
The largest share of funding, totalling £529 million, will support approximately 4,400 new homes in Greater Manchester, the seat of Andy Burnham’s previous mayoralty.
Other mayoral authorities benefitting from this funding announcement include West Midlands, North East, West Yorkshire, Liverpool, and South Yorkshire.
The Prime Minister commented on the need for new housing, asserting, “No child should be raised in a hostel room and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home.” He noted that councils have historically played a critical role in addressing housing crises, stating, “Backed properly, and trusted to get on with it, they will do it again.”
However, council housebuilding has seen a sharp decline in recent years, with just 2,000 completions annually recorded in the five years leading up to 2025. This sharply contrasts with the postwar peak that saw an average of 103,000 homes constructed each year in the late 1970s.
Prior to this announcement, local leaders and house builders indicated to media that rising costs and insufficient support from the central government were hindering efforts to construct more council homes.
In June, shortly before taking office, Burnham committed to leading the “biggest council housebuilding drive since the postwar period.” Experts, however, have expressed skepticism about the feasibility of achieving the levels of housing construction seen in the 1960s and 70s under current conditions.
The SAHP aims to deliver 300,000 homes for mixed affordable rent by 2036, with research from the Resolution Foundation indicating that an £8 billion funding boost would be required to ensure all homes are for social rent. This funding, however, would only facilitate the construction of 30,000 homes per year—significantly below the historical peak.
A final funding settlement for London remains pending, yet the Greater London Authority is anticipated to contribute at least £6 billion through the programme, with councils expected to construct half of the homes.
London’s mayor, Sadiq Khan, welcomed the funding, stating, “Thousands of Londoners will benefit from this new wave of new social and affordable homes, which will help people out of temporary accommodation and provide good, affordable homes to live in for the long-term, as we build a fairer, better London for everyone.”
