Things we’d like to see in the budget Episode 2 – Movement on Affordable Homes
Dear Rach,
With your budget just under a month away now, the housebuilding sector is very much hoping for concrete movement on a number of areas that could help the struggling sector and its 800,000 + employees.
Last week we covered changes to the landfill tax and how a more sympathetic approach could reduce the £8k – £24k per house expected additional cost.
This week we’re focusing on affordable housing and how you can help. The Home Builder’s Federation recently published some pretty grim numbers that really need to be addressed:
- More than 700 housing developments are currently stalled
- Around 900 completed Affordable Homes are currently standing empty
- In the last three years alone, at least 700 housing developments are estimated to have been delayed due to a lack of commitment from social housing providers, resulting in reduced availability of housing of all tenures.
- An estimated 100,000 private units are currently stalled, threatening jobs in the housebuilding sector and its supply chain up and down the country.
According to the CPA’s highly respected Construction Industry Forecasts Autumn 2025 report, their upper scenario – which we all hope for of course – is based on a stronger recovery in economic growth, which should see demand for affordable housing and market sale housing strengthen quickly at the start of 2026: “This could buoy housing association confidence to proceed with activity and release a backlog of starts under the 2021-2026 AHP.”
So it seems that economic growth is the key rather than additional taxes reducing the ability of consumers to buy houses and builders to build them.
A letter from more than 90 HBF members to the Housing Minister urged Government intervention through encouragement of, among other things:
- “Reassurance that if an RP cannot be found, the Affordable Homes can be changed to an alternative tenure”
- “Or as a last resort, a payment made to the LPA in lieu of the Affordable Housing.”
Can you help with some growth promoting measures Rach? Or at least some intervention to release the blocks currently holding back building of the affordable and social homes?
James Scott
MD
