Labour’s economic vision for the country, set out in the Autumn Budget, undoubtedly gave the public a lot to consider. The Chancellor laid out a framework from a property perspective – but there remains plenty of details to be finalised. How an alleviation of the country’s housing crisis could be realised - including sweeping changes to the planning approval process - was left to be divulged at the second phase of the Spending Review.
It was within this context that June’s Spending Review was eagerly anticipated by the property industry. Although there were worries in the build up to the event that the ambition of the Autumn Statement may have been curtailed by a narrower fiscal headroom and concerns around GDP growth estimates, the Chancellor followed through on her commitment to housing, with a confirmation of £39billion for a successor to the Affordable Homes Programme over 10 years from 2026‑27 to 2035‑36.
This funding injection is a substantial, long-term commitment that gives registered social housing providers and local authorities the clarity and confidence needed to plan for the future. It boosts chances of achieving the ambitious 1.5million homes target before the end of this Parliament, but critically the Government has acknowledged that addressing the chronic undersupply of genuinely affordable housing is not a short-term project - it requires sustained investment.
Yet for all the significance of this pledge, it would be a mistake to interpret it as a full solution to the housing crisis. Details of the new iteration of the Affordable Homes Programme are yet to be revealed, and homebuilders will be relying on clarity before they can begin planning. The need for homes is immediate, however the pledged funding alone will not speed up the process. The Centre for Policy Studies estimates that there is a countrywide shortage of 6.5million homes - a shortfall which would require far more investment than has currently been promised. *
Arguably, the scale of the challenge ahead makes it more urgent than ever for the private sector to step up and become much more of an active partner in delivery. Developers and institutional investors must now align with this new policy direction and recognise that profitability and public purpose need not be mutually exclusive. They must also consider specialist finance products to realise plans for ambitious projects.
We are already seeing signs of movement. Long-term investors and SME housebuilders are increasingly eyeing social and affordable housing as stable, socially responsible assets. But these shifts remain slow. What’s needed now is a decisive change in mindset - one that sees investment in social housing not as an obligation, but as an opportunity.
Since we launched our Community Housing and Healthcare channel a few short years ago, we’ve supported the delivery of housing to over 8,000 tenants and financed over 1,000 affordable homes - but the opportunity and demand we’re seeing for even more support is undeniable.
That opportunity lies not just in financial returns, but in the chance to be part of something far larger: reshaping our cities and communities for the better. The Government has taken the first, necessary step. The private sector must now match that ambition - because solving the housing crisis will only be possible if every part of the system is pulling in the same direction.
