‘Gap must be filled by social housing’ – sector hopeful of funding boost after OBR forecasts 1.3m new homes against Starmer’s 1.5m target

Sector bodies are calling for a significant boost in social housing funding to fill the gap between increased delivery as a result of planning reforms and Keir Starmer’s 1.5m homes target.

The Office for Budget Responsibility (OBR) yesterday forecast reforms to the National Planning Policy Framework (NPPF) will push delivery to 1.3m homes by March 2030. It said net additions will be 137,000 homes higher than they would have been without the planning reforms, with annual delivery reaching a 40-year high of 305,000 units by 2029/30.

Labour in its manifesto pledge however promised 1.5m homes by the end of the parliament, which will be August 2029 at the latest.

The 1.3m figure does not consider homes delivered through the next affordable homes programme, details of which are expected to be announced in June, nor any extra homes as a result of the Planning & Infrastructure Bill or other policies yet to be implemented.

Responding to the OBR forecast and spring statement yesterday, social housing bodies said the gap between the 1.3m figure and the 1.5m manifesto pledge must be filled by homes for social and affordable housing tenures.

Rachael Williamson, interim director of policy, communications and public affairs, at the Chartered Intitute of Housing, said: “The OBR analysis shows that the government will struggle to meet its target of building 1.5 million homes without significant investment in social and affordable homes.

“As we look towards the spending review in June, it is vital that government continues its work to develop a long-term successor to the Affordable Homes Programme (AHP) that prioritises homes for social rent, and delivers the level of funding that is required to tackle soaring levels of homelessness.”

Williamson joined several other housing figures in welcoming the government’s announcement this week of £2bn in affordable homes grant funding to ‘bridge’ the gap between the end of the 2021-26 AHP and the new programme expected to be announced in the June spending review. This was on top of £800m in top-ups to the existing 2021-26 programme.

Kate Henderson, chief executive at the National Housing Federation, said: “Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the spending review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need.”

>>See also: Reeves announces extra £2bn for affordable homes

>>See also: Housing Today and G15 call on ministers to explore new grant funding model

Tracy Harrison, chief executive, of the Northern Housing Consortium said: “All eyes are on now on the spending review in the summer, where details of a longer-term affordable housing fund are expected.

“Alongside this, Government should invest in the North’s brownfield land, where there is capacity for 320,000 new homes. A ten-year £4.2 billion programme would remediate all the North’s brownfield land.

Mark Perry, chief executive of Vivid, said he hopes the £2bn affordable housing funding announced earlier this week “really is a Treasury down payment” ahead of significant funding announcements in June.

He said: “While we noted the Chancellor’s optimism around the impact of national planning policy changes on housing delivery, these reforms alone won’t help increase the number of new homes being built as wider and further measures are needed.”