Response to the Spring Statement Elizabeth Froude, Group Chief Executive Platform Housing Group

Chancellor Rachel Reeves, in her Spring Statement delivered on 26 March, outlined several key initiatives aimed at addressing the UK’s housing crisis, with a particular focus on social housing and increasing the overall housing supply. Here’s what Elizabeth Froude, Group Chief Executive of Platform Housing Group had to say:

“We remain committed to the ongoing delivery of social rented homes, so the £2 billion investment in social and affordable housing is a welcome addition; this funding is projected to facilitate the construction of up to 18,000 new social and affordable homes, with construction set to commence in March 2027 and completion targeted by the next general election in 2029.  However, further funding will be required if we are to get anywhere near the national goal of constructing 1.5 million homes over the next five years.

“The government also announced that it plans to consult on a new five year social housing rent settlement, proposing annual rent increase in line with the Consumer Price Index plus 1 per cent.  Whilst assurance about rent certainty will support our ability to borrow the extra multiples of funding needed over and above the grant, five years is not a long term period in the construction industry, especially with growing energy requirements and build standards on the horizon.

“The adjustments to the Right to Buy Scheme – the Chancellor announced the government plans to reduce discounts available under the scheme - are a positive move which will help to halt the erosion in the number of existing social rented homes. Furthermore, allowing local authorities to retain the full funds for delivery of more housing – they will now be able to retain 100 per cent of receipts from Right to Buy sales - will be positive in many areas where we have homes, as well as allowing for reinvestment into new social housing developments. It will also ensure we can continue to build on existing strong and long standing relationships with local councils to strengthen local communities.”

The Chancellor also announced intentions to reform the National Planning Policy Framework to streamline the process for new housing developments; this includes prioritising brownfield and ‘greybelt’ land for development and lifting the ban on new onshore wind projects in England.