The government’s recent Spending Review shows that housing matters now and put the social housing sector in the spotlight, committing £39 billion to the affordable homes market and reaffirming funding for the £13.2 billion Warm Homes Plan.
This has been followed up with the announcement of the new National Housing Bank which will operate as a subsidiary of Homes England to accelerate housebuilding through public and private funding and will manage £2.5 billion in low-cost loans for social housing providers.
For a sector long in need of certainty, strategic direction and substantial investment this announcement can be seen as both a relief and a call to action. The challenge now is to ensure that this funding is used wisely to transform lives, strengthen communities and reshape the sector for the better.
For years social housing has operated in an environment dominated by short-term funding cycles, policy shifts and budget cuts. This has hindered the ability to plan, invest, and innovate effectively. The government’s multi-year commitment provides an opportunity to break free from these constraints. This investment signals not just fiscal support but also confidence in the sector’s ability to deliver meaningful change.
The focus cannot just be on the volume of homes delivered. Social housing shapes communities and improves lives, so we should be creating better homes that drive economic benefits through job creation during construction and increased disposable income from affordable rents. Additionally, warm, comfortable and accessible homes improve health outcomes and reduce NHS costs, whilst energy-efficient housing supports the country’s net-zero targets by cutting emissions and alleviating fuel poverty. Investment in affordable homes can have a regenerative effect, revitalise communities and foster economic growth.
The recommitment of the Warm Homes Plan is to be welcomed. Its success will not only be measured by the number of retrofitted properties but also by its impact on creating healthier and more sustainable communities. Housing providers should review
their business plans to align development pipelines and integrate retrofit and new build programmes. By upskilling staff and supply chains and embracing modern methods of construction and digital innovation, providers can deliver at scale and pace on both retrofit and new build agendas. The government has demonstrated its intention, and the sector must now respond with bold, locally tailored action.
The sector has a responsibility to ensure every pound committed delivers maximum value. This means seeking out opportunities to align and integrate activities and seek wider geographical based solutions such as combining retrofit projects with regeneration efforts to improve both homes and public spaces. New developments should incorporate social value by embedding skills training, apprenticeships and local employment opportunities. Health and housing initiatives should be integrated to create environments that support independent living and reduce demands on local health services. A joined-up approach not only delivers better outcomes but also strengthens the case for sustained government investment.
Achieving economies of scale is crucial to delivering value for money. Aggregated procurement (something we are well versed in) which is the bulk purchasing of materials and services can reduce costs. Standardised design and specification can also simplify processes and enable offsite manufacturing, whilst shared services can free up resources for frontline delivery. Collaborative delivery models, which share risks and rewards, can further enhance efficiency. This can stretch resources further and amplify their impact.
What needs to be delivered, can’t be delivered by isolated pockets of activity. Collaboration, rather than competition, should be the norm. The ambitious targets of building 1.5 million new homes and retrofitting existing properties demand a unified effort. Housing providers should look beyond competing for funding, land, and resources, and pool expertise, share risk, and align procurement strategies. Frameworks for partnership, such as consortia, joint ventures, and regional alliances, will be essential for achieving scale and speed in delivery.
While government funding is significant, it cannot meet the sector’s ambitions alone. The certainty provided by this announcement creates an environment conducive to attracting private sector investment. Long-term institutional investors can find predictable returns through the government’s commitment. Blended public and private finance can enable the delivery of more homes and retrofit programmes. By positioning the sector as a safe, impactful destination for investment, the opportunity opens to multiply the impact of public funds.
Continuous improvement and sharing learning must underpin the sector’s efforts. Sharing data and insights on what works and what does not, benchmarking performance for best practice and investing in leadership and skills development will help accelerate progress. Breaking down organisational silos will allow the sector to move faster and deliver better outcomes for residents.
Ultimately, the success of this investment will be judged by its impact on residents. Every home built, property retrofitted and community regenerated must improve the lives of those who live there. Genuine resident engagement in the design, delivery and management of homes and services is essential. The sector must prioritise quality, safety and affordability while supporting residents in thriving through employment, education and improved health.
The Spending Review has demonstrated that the government is listening and responding to the needs of the social housing sector. However, the responsibility now shifts to the sector itself to deliver. While the government cannot fund everything, with certainty, ambition and collaboration this investment can make a profound difference.
The goal should be not just more homes, but better homes, stronger communities and brighter futures.
