We knew ahead of time to expect what the Government are calling the biggest boost to investment in social and affordable homes in a generation: £39 billion for a new 10-year Affordable Homes Programme (AHP). 

But as well as the details of the new 2026-2036 AHP and the much welcomed 10-year social housing rent settlement at CPI plus 1% and a re-opening of the discussion rent convergence ( Rent settlement: Sector views heard), the sector will be encouraged to hear that the detail of the published Spending Review go even further. 

As well as a commitment ‘to provide £2.5 billion of low-interest loans over the sending review for social housing providers to further boost their capacity to invest in new development’, there is also confirmation of ‘1 billion of new investment between 2026‑27 and 2029- 30 to accelerate the remediation of social housing, by giving social housing providers equal access to government funding as private building owner’.  

The sector will be keen to understand the strings attached - whether this is reference to damp and mould remediation, separate funding or a change in the eligibility criteria, for cladding remediation for those RPs unable to access the Building Safety Fund, or a combination of those.  But whatever the small print may be, it will be more than welcomed by RPs who have so far had to divert income away from redevelopment in order to address challenges with existing stock. 

Rachel Reeves also announced an additional £10 billion, partly to be managed by Homes England, to unlock additional capacity. Catalysing additional private investment and fostering what they have termed an ‘entrepreneurial state’, it’s clear the Government have been listening to the calls from the sector for a nuanced approach to tackling the current housing crisis.  

Including also £13.2 billion for the Warm Homes Plan, further plans to come for New Towns, an additional £100m to tackle homelessness and the need for a joined-up approach with investment in infrastructure, today, no doubt the sector will be relieved that the Government have answered so many of the calls to enable us to get on and deal with the current housing crisis.