Rachel Reeves, the Chancellor, will announce nearly £40bn in affordable housing grants over 10 years, almost doubling previous government spending. This is part of a wider £113bn increase in capital spending, funded by revised borrowing rules. The investment aims to tackle the housing crisis and help meet the government’s target of building 1.5 million homes.
Key measures in the new programme include:
– Allowing social landlords to raise rents by 1% above inflation for the next decade.
– Helping housing associations purchase thousands of unoccupied homes built by private developers.
– Launching a consultation to explore aligning the cheapest social rents with higher ones.
This funding package follows extensive discussions between the Treasury and the Department for Housing. It represents a significant increase in support for affordable housing and reflects the need for long-term investment to meet national housebuilding goals. The funding will sit alongside £15.6bn for local transport projects and £14.2bn for a new nuclear power plant at Sizewell C.
Additionally:
– The Vagrancy Act of 1824, which criminalises rough sleeping, will be repealed within a year.
– The announcement follows the passage of a planning bill that makes development easier, though some warn it could put sensitive natural habitats at risk.
Kwajo Tweneboa Responds: “We Need More Than Just Headlines”
“Rachel Reeves’ pledge to invest £39 billion in affordable housing over the next decade is a step in the right direction — but we need more than just headlines. We need details, targets, and transparency. The Government still has not set a target for how many social and council homes they will build. That’s what families on the social housing waiting list desperately need to hear. It is THE KEY to tackling the housing crisis.”
“For years, billions have been wasted firefighting this crisis — through housing benefit, emergency support, and sky-high costs of temporary accommodation. That’s public money going straight to private landlords instead of fixing the root problem. It’s not working, and it’s failing the people it’s meant to help.”
“We need to stop patching up a broken system and start rebuilding it. That means investing in high-quality, permanent council homes, at scale. This announcement has potential — but without clear social housing targets, it risks becoming another promise that won’t deliver change for the children and families who need it most.”
“That said, I’d like to commend Angela Rayner for securing this commitment from the Treasury. It’s a start — and I really hope it marks the turning point so many families across the country desperately need.”
“There can be no more excuses for taking rent from families while leaving them in slum-like dangerous conditions.”
Campaigners Urge Accountability
Housing activists and campaigners have broadly welcomed the announcement. Social housing has long been treated as a political football, entering and exiting the news cycle depending on broader political and economic pressures. This renewed focus marks a significant moment for those pushing for lasting solutions to the housing crisis — but campaigners stress that it must be followed by action, not just ambition.
