Andy Burnham announces £10bn council house building package
Andy Burnham has announced the comeback of the council house as he unveiled a £10bn package to build 70,000 new homes in England, reports BritPanorama.
Building thousands of new council houses was one of his “day one” priorities when taking over from Sir Keir Starmer in July, when he warned that “no child should be raised in a hostel room and no family should wait 10 years for a front door of their own.”
This marks the first major spending announcement of the Burnham government, although the funding comes from a £39bn allocation agreed by Sir Keir and ex-chancellor Rachel Reeves in the 2025 spending review.
The plan builds on the government’s commitment to deliver 1.5 million homes during this parliament, including the largest boost to council, social and affordable housing in a generation, amid concerns that the target will be missed. It also coincides with the Prime Minister’s focus on ending rough sleeping.
The announcement enables councils across England to access funding to accelerate the construction of new homes while gaining new powers to make decisions in their respective areas.
“I have said from my first day in this job that everything starts with a good home,” said the Prime Minister, who has also championed a decentralisation policy.
“Nearly £10bn will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest. Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”
The initiative aims to address the longstanding social housing crisis rooted in the mass sell-off of council houses initiated by Margaret Thatcher in the 1980s. Insufficient replacements for sold-off stock, combined with increased bureaucracy surrounding new builds, has left some areas grappling with waiting lists extending up to 50 years.
The announcement arrives just 24 hours after Reform UK disclosed plans to construct 50,000 social housing units annually while prioritising married individuals and military veterans, restricting access to those born in the UK.
Reform deputy leader Richard Tice, a former property entrepreneur, acknowledged the failure to replace council housing stock following the Thatcher sell-off as “a mistake.”
However, Tory Shadow Housing Secretary Sir James Cleverly dismissed Mr Burnham’s package as “a sleight of hand” and cautioned that it represents “another unfunded spending commitment.”
He remarked, “The small print shows homes won’t have to be delivered until 2039. The funding has been backloaded to fall outside the Spending Review and this Parliament, meaning Andy Burnham will never have to pay for it. Instead, it’ll be another cheque written by Labour PM and left for future generations to cover.”
According to government sources, approximately £2 million of the funds will be allocated to London, aiding the construction of thousands of homes.
Greater Manchester, where Mr Burnham was recently mayor, is set to receive £529m for 4,400 homes—the second-highest allocation. Other regions, such as the West Midlands, North East, West Yorkshire, Liverpool, and South Yorkshire, will also see significant funding based on their respective needs.
Housing Secretary Angela Rayner stated, “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.”
This allocation represents just the first stage of a 10-year programme. More than £16bn remains available for allocation outside London, intending to expand council housing to the greatest extent seen in decades.
London Mayor Sir Sadiq Khan reaffirmed his commitment to addressing the housing crisis, noting the necessity for more affordable homes to meet demand. He expressed a willingness to collaborate with the new government to increase council home delivery.
Housing associations and other providers will continue playing an essential role in delivering the social and affordable homes the country desperately needs.
Kate Henderson, chief executive of the National Housing Federation, welcomed the funding confirmation, saying it would help jumpstart the construction of tens of thousands of new social homes.
Gavin Smart, chief executive at the Chartered Institute of Housing, hailed the focus on homes for social rent and highlighted the importance of collaboration among councils, housing associations, and other stakeholders to realize the next generation of genuinely affordable homes. If executed promptly, this investment holds the potential to alleviate homelessness and ensure more individuals secure safe, affordable living arrangements.
