Richard Fearon, CEO of Leeds Building Society, said it welcomed the “government’s bold and long-term commitment to tackling the housing crisis” outlined in the Spending Review.
“The investment into the Affordable Homes Programme, including the commitment to social rent, alongside plans to accelerate delivery and improve energy efficiency is good news for renters, first-time buyers and homeowners across the country.
“It’s a thoughtful plan that won’t solve every issue overnight, but it’s a strong step forward and we’re ready to work with the government and support our members to help bring it to life,” he said.
Chris Baguley, managing director of corporate at property finance specialist Together, agreed that the £39bn for social and affordable homes was a “significant boost” in an “age of insecurity”.
“This could be a pivotal moment in the government’s race to build 1.5 million new homes. With at least 350,000 homeless people in England right now, direct action like this is critical to help those at risk – and quickly.
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“Reeves’ signposts to a new affordable homes programme as part of the planning reforms already underway are also welcome – albeit light on detail as to the actual scale and location of these properties.
“While upfront investment at this scale is promising – it is only part of the solution. More support for social housing developers and their trusted lenders is vital for ongoing projects, providing more affordable housing and community spaces where they are needed most,” he noted.
Tony Hall, head of business development at Saffron for Intermediaries, said it’s “really positive to see this level of investment going into affordable housing”.
“A long-term funding commitment like this sends the right signals to developers, housing associations and lenders, and should give first-time buyers a better chance of finding a home they can actually afford.
“That said, funding is only part of the equation. The planning system remains one of the biggest blockers to delivery and, without proper reform, too many projects risk being left in limbo. If we’re serious about hitting the 1.5 million homes target, we need to look at all options on the table. Self- and custom-builds are just one example of where change could unlock real progress, but only if we make it quicker and easier to get viable developments off the ground,” he noted.
Govt needs to take ‘greater advantage’ of unanimous feeling around housing crisis
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said the additional £39bn for social and affordable housing and easing of borrowing rules were “very welcome, but what we want to see is more ‘boots on the ground’ – and ASAP”.
He continued: “We don’t believe we’ve ever encountered such unanimity among the main parties in over 30 years of trading, particularly as it’s so often political disagreements that get in the way of development.
“We would love to hear the government taking greater advantage of that almost unanimous agreement on how to fix the housing crisis.”
Leaf added that governments “cannot tell housebuilders when and how much to build” but “can make it easier for them to gain deliverable consents for certain types of property or companies – such as SMEs”.
He said the government could encourage more supply of energy-efficient, affordable homes of quality, initially on publicly owned land, and offer incentives to other landowners to release and accelerate the delivery of previously consented sites.
“Many housebuilders have unsold plots of land but will only build at the rate they can sell – preferably without having to reduce prices – while absorbing building costs and [a] shortage of skilled workers,” Leaf noted.
“Economic growth is another significant contributor to housebuilder confidence, but of course, there’s no guarantees there either. Progress is being made with housebuilding, but we would also want to hear that planning and delivery numbers are being checked regularly to see if they’re meeting aspirations and, if not, taking further action as necessary.
“We often find it’s the peripheral decisions such as planning conditions, infrastructure, legal sign-off, capacity, etc, [that] are just as important, especially as so many Local Plans are out of date.
“We must not forget – it’s not just about building more but also making better use of existing resources, including the large number of short- and long-term empty properties,” he noted.
MHCLG cuts could have ‘major knock-on effect’
Nick Jones, the mortgage sales and marketing director for Access FS, said that while the headlines of social housing and more funding to be delivered by Homes England were “good”, the Ministry of Housing was “very publicly battling to protect day-to-day funding”.
“While that funding is not in the spotlight, cuts there could have a major knock-on effect for levels of resourcing in local government planning support. So, while it might not grab the headlines, I’m worried reductions in local government budgets could hobble planning functions.
“Planning delays and under-resourced local authorities have been holding back the UK’s property market for too long – and this could make the situation worse,” he said.
