Burnham’s Council House Building Ambition
We very much welcome the ambition outlined in Andy Burnham’s speech this week for the “biggest council house building programme since the post-war period”.
A quick look back reveals that 4.4 million new social homes were built in the 35 years following the end of the second world war (Source: Shelter, UK Parliament) –housebuilding levels that never recovered as we moved into the 80’s and beyond:
Of course, a genuine council housebuilding programme on public land, backed by planning reform, means more work for structural timber, trusses and timber frame. It also favours regional SMEs over the volume housebuilders.
However, we are cautious on two fronts. First: the funding plan has yet to be revealed; second: the track record of delivery by the Prime Minister Presumptive.
The Funding Story
Right now there’s no settled or credible funding mechanism attached to the ambition, just a list of possibilities: £40bn of additional borrowing, the National Wealth Fund, Homes England’s National Housing Bank, or a state-backed developer borrowing more cheaply. Monday’s speech focused on why homes need building, not how they’re actually going to be paid for. Even the BCIS economist’s view was that the ambition is clear, but the delivery model isn’t *.
For us, the risk isn’t the welcome building programme. It’s the funding. More government borrowing could push up gilt yields and increase borrowing costs across the market. If fiscal rules limit that route, the money has to come from somewhere else. Either way, it is highly unlikely to be a free lunch.
Delivery
When assessing the viability of any programme, one should consider the track record of its proponent. In May 2024, Andy Burnham pledged to build 10,000 new council homes in his Greater Manchester mayoralty by 2028 **. Progress against this pledge so far is as follows:
- The number of affordable housing completions in FY2024/25 was 511 homes (205 social rent; distinct from 117 affordable rent; 19 discounted market rent; 109 shared ownership; and 61 rent to buy). ***
- Almost 1,000 of 4,766 new homes completed across the city in FY2025/26 were affordable, with 439 of these 901 affordable homes available for social rent. ****
That’s less than 7% of his target for social rent homes delivered over the first half of the period covered by the pledge – nowhere near the trajectory required and definitely a delivery record that doesn’t yet support the promise. No doubt the funding mechanism is a contributing element.
Looking Forward
Burnham’s pledged UK-wide council house building programme has the potential to be a welcome shot in the arm for our sector. We look forward to understanding the funding mechanism that will help turn it from an ambition into a deliverable reality.
James Scott
MD
Sources include:
* https://www.bcis.co.uk/news/burnham-launches-labour-leadership-campaign-with-housing-on-the-agenda/
*** https://www.manchester.gov.uk/__data/assets/pdf_file/0024/175533/AMR-2025-Report.pdf *
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