According to Reeves, this must include social housing, which she says has been neglected by too many decades.<\/p>\n<\/div>\n
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\u201cWe are taking action,\u201d she added.<\/p>\n<\/div>\n
Industry reaction:<\/p>\n
Richard Donnell, executive director of research at Zoopla, commented:<\/strong> \u201cIncreased investment in affordable housing is vital to support the ambitions to build 1.5m homes. The nation can\u2019t spend its way out of the housing crisis and while more money is going in, the costs of development are rising faster than sales values which is reducing the viability of building homes. Building the homes the nation needs requires the implementation of the full spectrum of planning reforms, more investment in affordable homes and further demand side support for new home buyers.\u201d<\/p>\n\u00a0<\/p>\n
Jonathan Pearson, director at Residentially, said: <\/strong>\u201cThis new funding delivers the clearest signal yet that the government understands the scale of the challenge facing the country\u2019s affordable housing providers. The housing associations I work with have always stressed that they stood ready to scale up their efforts in line with the Government\u2019s own ambitions, but they first needed to know how much money was available and how it would be allocated. Today\u2019s announcement goes a long way towards answering that call.<\/p>\n\u201cWhile we\u2019re still awaiting further clarity around how and when this funding will be allocated, they can at least begin to plan multi-phase schemes, secure land, and mobilise supply chains with confidence and at the pace required to help meet the 1.5 million-homes target. Not-for-profit housing associations are also forced to make every penny count when it comes to the number of new homes they can afford to take on, so longer-term certainty on rent is also going to be important when it comes to their developing\u00a0their\u00a0plans.\u201d<\/p>\n
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William Reeve, CEO of Goodlord, commented:<\/strong> \u201cWe welcome the announcement that the government plans to double spending on affordable housing \u2013 the immediate bump to housebuilder share prices that followed the chancellor\u2019s speech is testament to how this is being received across the industry. This \u00a340bn commitment could not come a moment too soon.<\/p>\n\u201cThe myriad pressures on the housing market \u2013 from rising rents and retreating landlords, to crumbling social properties and escalating numbers living in temporary accommodation \u2013 all of it stems back to a historic failure to ensure our housing stock keeps up with population growth. We need to focus all efforts on driving up the number of homes available and close a gap that\u2019s been rising year-on-year.<\/p>\n
\u201cToday\u2019s funding commitment is a key announcement for the market and includes other much needed reforms such as a sensible step forward on social rents and \u00a310bn for financial investments. The big hope is that this money, combined with planning reforms, will see the OBR\u2019s forecast \u2013 that house building will hit its highest level in over 40 years by 2029\/30 \u2013 come to fruition.\u201d<\/p>\n
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Alex Slater, Rightmove\u2019s housebuilding commentator, said:<\/b>\u00a0\u201cToday\u2019s news is a really positive boost for the housebuilding industry and a step in the right direction. There aren\u2019t enough affordable homes, so we welcome any initiatives that will help the sector to deliver more of these homes to market. What will be key is making sure more affordable homes are delivered in the right places, where the gap in supply and demand is greatest. Hopefully this is one of many steps to come to support the delivery of much needed homes across the country.\u201d<\/p>\n
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Neil Kelly, head of land and development at Bidwells, stated:\u00a0<\/strong>\u201cIt is a relief to see the government allocate capital funding towards the delivery of affordable and social housing, which are both chronically undersupplied but also vital components of the housing jigsaw.<\/p>\n\u201cA key question is whether the funding will be available for use on affordable housing delivered through Section 106 agreements. If not, the impact of the funding will be severely limited, as it won\u2019t actually make any impression on resolving the current delivery issues faced on the ground, primarily in regard to the lack of registered providers\u2019 appetite to acquire the S106 units, leaving open market delivery stymied.<\/p>\n
\u201cThe government should also look to provide more support across a range of tenure types to address the crisis at multiple levels. In the market sale sector, for example, housebuilders are struggling to accelerate delivery due to mortgage unaffordability, inflation, and challenges around viability.<\/p>\n
\u201cThe reintroduction of a policy like Help to Buy, alongside Labour\u2019s changes to the National Panning Policy Framework, offers real potential in terms of solving the housing crisis and accelerating delivery, boosting government coffers by tackling the housing shortage at both the demand and supply side.\u201d<\/p>\n<\/div>\n
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Emma Humphreys, partner, Charles Russell Speechlys, noted:\u00a0<\/strong>\u201cGiven the recent dip in new homes receiving approval, there are serious concerns about an even tighter housing supply.\u00a0 Serious change is needed but it is unclear whether the proposed additional government spending will achieve that \u2013 given the continuing obstacles to development and absence of any government support for first-time buyers. There is also the consistent issue of what \u201caffordable housing\u201d means and whether it will really give families the homes they need.\u201d<\/p>\n\u00a0<\/p>\n
Emma Joy Smith, social housing partner at law firm,<\/strong> Shakespeare Martineau<\/strong>, said:<\/strong>\u00a0<\/strong>\u201cThe social housing sector has been overlooked for too long, but an injection of \u00a339bn into the Affordable Homes Program over the next 10 years could be the starting point for real, long-lasting change. With waiting lists recently revealed to be over 100 years in some areas of the UK, there is still a long road ahead and a lot of work to be done. The government needs to ensure that this investment doesn\u2019t also come with more cumbersome bureaucracy so that housing associations can hit the ground running.<\/p>\n\u201cThe announcements today should be celebrated and give certainty and direction to a sector that has been left to stagnate for too long. The need to build affordable homes goes beyond just meeting a target, it changes lives. The ability to put down roots, become part of a community and live in safe, high quality affordable housing helps individuals, cities and the country flourish. The UK will reap the benefits of today\u2019s announcement for years to come.\u201d<\/p>\n
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Elle Cass, chartered town planner and head of strategic built environment growth at SLR Consulting, said:<\/strong> \u201c\u00a339bn is no small fee, it\u2019s the single biggest commitment in today\u2019s Spending Review and marks a clear shift in tone from the government. Compared to the last administration, this represents almost a 50% uplift in annual affordable housing investment. It shows real intent, a willingness to borrow for growth, and an understanding that stimulus is essential, something the US proved in the wake of the last financial crisis.\u2019<\/p>\n\u201cBut while the funding headline is positive, there are clear gaps. There\u2019s still no dedicated social housing grant to allow registered providers to acquire or build genuinely affordable homes. That\u2019s a missed opportunity. We urgently need a national housebuilding programme, led by council housing, to meet demand, just as we did post-war. That requires structural reform, including serious investment in planning skills. Scrapping funding for Level 7 planning apprenticeships, for example, is a backwards step at exactly the wrong time.<\/p>\n
\u201cRaising social rents by 1% above inflation, as reported, is also deeply concerning. At a time when private rents are already unaffordable for many, that kind of increase risks pushing more people into hardship.<\/p>\n
\u201cThis is a major investment and a welcome signal of intent, but without structural changes, council-led delivery, and proper workforce planning, it risks falling short. We can\u2019t just pump money in, we need the system ready to deliver. And we mustn\u2019t forget industrial and logistics infrastructure either, they\u2019re the foundation of a resilient economy and must be part of the conversation.\u201d<\/p>\n
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Mike Haywood, CEO of Property Sense, added: <\/strong>\u201cUnderstandably, there appears to be a revitalised focus on affordable housing in the Chancellor\u2019s Spending Review, but that should not take away from the vital role that BTR continues to play in addressing the UK\u2019s housing challenges.\u201d<\/p>\n\u201cBTR delivers professionally managed rental homes designed to meet the needs of today\u2019s renters \u2013 offering stability, community, and modern living standards. There must be investment and incentives for BTR developments, not just for owner-occupied housing. This is the only way to build back a balanced housing market that offers secure, high-quality rental options, particularly given these properties are in greater demand than ever before.\u201d<\/p>\n
\u201cUltimately, it\u2019s about giving people real, viable options for secure housing \u2013 whether that\u2019s buying or renting \u2013 and building a housing ecosystem that works for everyone.\u201d<\/p>\n
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![\"\"](\"https:\/\/propertyindustryeye.com\/wp-content\/uploads\/2025\/06\/Rachel-Reeves-.png\")
<\/a>Chancellor Rachel Reeves has just delivered her Spending Review, setting out budgets for government departments, including housing.<\/p>\n