A social and affordable housing renewal decade: The long term government plan for delivery

1 Announcement in brief
2 5 steps described in the polic paper
3 Comments from Government
4 Reactions from Industry
5 Related articles on Designing Buildings
6 External links

[edit] Announcement in brief

On 1 July, 2025 the UK government announced a major housing renewal initiative aimed at addressing the long-standing housing crisis, with a commitment to build approximately 300,000 new social and affordable homes. Spearheaded by the Deputy Prime Minister, this decade-long plan is a central part of the government’s broader “Plan for Change” and is backed by a £39 billion Social and Affordable Homes Programme unveiled at the Spending Review.

A key feature of the plan is that at least 60% of the new homes—about 180,000—will be allocated for social rent, making housing more affordable by linking rent to local incomes. This marks a sixfold increase in social rent homes compared to the previous decade. The initiative aims to combat the rising number of families and over 165,000 children currently living in temporary accommodations.

On 2 July 2025 the government published it policy paper “Delivering a Decade of Renewal for Social and Affordable Housing” strategy aims to not only boost housing supply but also improve housing quality and safety. The government plans to modernise the Decent Homes Standard and extend it to private rentals, while also introducing Minimum Energy Efficiency Standards in the social housing sector for the first time.

Additional reforms include changes to the Right to Buy scheme to preserve council housing stock and measures to stimulate investment in both new and existing homes. The plan also calls on housing providers to meet higher standards and play an active role in delivering better living conditions.

Homes England will oversee the delivery of most of the programme, with up to 30% of funding allocated to the Greater London Authority. Compared to the previous 2021–2026 Affordable Homes Programme (£12.3bn), the new plan nearly doubles annual investment, with £4bn expected in 2029/30.

A new 10-year rent settlement will begin in April 2026, offering certainty to the sector for long-term planning. A consultation is also underway on implementing rent convergence measures, potentially capped at £1 or £2 per week. Additional consultations will explore a modernised Decent Homes Standard, new energy efficiency requirements, and tenant safety measures aligned with Awaab’s Law.

Reforms to the Right to Buy scheme, including reduced cash discounts, aim to protect existing housing stock and support council housebuilding. The plan is part of a broader effort to tackle the housing crisis, complemented by updates to planning policy, a Planning and Infrastructure Bill, and the establishment of a National Housing Bank to support delivery and investment at scale.

[edit] 5 steps described in the polic paper

[edit] Step 1: Deliver the biggest boost to grant funding in a generation

The £39 billion Social and Affordable Homes Programme (SAHP) for 2026–2036, represents the largest investment in social and affordable housing in a generation. The primary goal being to maximise housing supply, particularly Social Rent homes, aiming to significantly reduce poverty and homelessness by supporting working families. The programme combines proven elements of past housing initiatives with new, flexible features to support a diverse range of housing types, including rural, supported, and council-built homes. Allocations won't be region-specific beyond London, but mayoral authorities will influence strategic direction locally with bidding open winter 2025 and prospectus in the autumn.

In parallel, the government aims to reinforce investor confidence with a decade-long rent and capital funding settlement, and by laying out a stable regulatory framework. Recognising the key role of private investment, the government encourages social housing providers to access new funding sources while maintaining housing quality. Homes England and the GLA will set initial delivery targets based on provider bids, and the programme will allow for strategic partnerships and continuous bidding. An emphasis on new construction as well as regeneration or acquisition projects, it signals a transformative shift for social and affordable housing, providing long-term certainty for providers and investors alike

[edit] Step 2: Rebuild the sector’s capacity to borrow and invest in new and existing homes

Over the past decade, financial resilience of housing associations and councils has declined due to increased costs related to building safety, maintenance, and rising interest rates, alongside rent cuts imposed by previous policies. In response, the government has introduced new long-term rent settlements to restore capacity. Starting April 2026, social housing rents can rise annually by CPI+1%, now extended for ten years, offering more certainty for providers and investors. Additionally, a rent convergence mechanism will be introduced to gradually increase rents on homes currently charged below the formula rent level, making it more equitable. Implementation details will be confirmed in the Autumn Budget, following consultation, with proposed caps of £1 or £2 per week to balance fairness and investment needs.

To further support housing providers, the government commits over £1 billion between 2026–2030 to help social landlords access building safety remediation funding—previously limited mostly to private providers. In addition, £2.5 billion in low-interest loans will be made available over the Spending Review period to help finance new social and affordable housing. These loans can be combined with grants, guarantees, and developer contributions to enable greater investment in housing delivery. The government will collaborate with providers over the summer to ensure the effective design and rollout of these financial tools, aiming to overcome borrowing constraints and support long-term development goals.

[edit] Step 3: Establish an effective and stable regulatory regime

While building new social housing is a key priority, the government is equally focused on ensuring the UK’s existing four million social homes are safe, decent, and energy-efficient. Strengthened standards now require landlords to maintain accurate property records, deliver timely repairs, and meet updated safety regulations. Awaab’s Law, coming into force in 2025, mandates fast action on hazards like damp and mould, while new rules will require regular electrical safety checks. The Decent Homes Standard is also being modernised for the first time since 2006, focusing on real repair needs, essential facilities, energy efficiency, and the elimination of damp and mould. To support this, a consultation is underway on implementing new MEESs by 2030, including a £10,000 cost cap and exemptions for harder-to-upgrade homes.

Tenant empowerment and professionalism in the sector are also being prioritised. From 2026, social housing staff will be required to hold or work toward formal qualifications, and new access-to-information requirements will strengthen transparency and accountability. A £1 million Resident Experience Innovation Fund will support the development of better services for tenants. A review of how social housing is allocated and used is being carried out, with updated guidance to support vulnerable groups such as veterans and care leavers. Measures are also being explored to reduce vacancy times, promote mutual exchanges, and improve the supply and quality of supported housing. New licencing to regulate supported housing providers will be introduced, alongside a bid call to expand this critical part of the housing sector.

[edit] Step 4: Reinvigorate council housebuilding

In response to the decline in council housebuilding, averaging just 8,000 new affordable homes per year over the past five years, and poor replacement rates of sold Right to Buy homes, the government is launching a comprehensive strategy to reinvigorate council-led development. New Right to Buy reforms will preserve tenants’ ability to purchase their homes while protecting council stock, including raising eligibility from 3 to 10 years, reducing discounts, and exempting newly built social homes from Right to Buy for 35 years. Councils will also gain permanent flexibilities to spend Right to Buy receipts and, from 2026–27, can combine these with grant funding to speed up delivery. Additionally, reforms to Housing Revenue Account (HRA) rules and thresholds are under review to remove barriers to housebuilding for councils without an HRA, while alternative delivery models such as Local Housing Companies and partnerships are being encouraged.

To support long-term planning and investment, the government is considering the future of the discounted Public Works Loan Board (PWLB) rate, with an announcement expected in the autumn. Recognising the skills gap in local authorities, the new Council Housebuilding Skills & Capacity Programme (CHSCP), backed by £12 million, will help councils upskill staff and engage more effectively with Social and Affordable Homes Programmes. Centralised training, support from Homes England, and expansion of the Pathways to Planning programme to attract and train new talent, including surveyors and project managers, calling on all Council Leaders to reassess their role in delivering new council homes.

[edit] Step 5: Renewed partnership with the social and affordable housing sector to build at scale

The government has outlined a bold and comprehensive strategy to revive social and affordable housing over the next decade, acknowledging past neglect and current economic pressures. This plan aims to balance ambition with pragmatism, responding directly to sector feedback and providing tools such as long-term rent certainty, funding, regulatory reform, and investment in skills. With this renewed foundation, the government is issuing a "call to arms" to all stakeholders—councils, housing associations, developers, investors, regulators, and central government—to deliver homes at scale and with urgency. Central to this effort is collaboration, not only in building new homes and upgrading existing ones, but also in unlocking affordable housing via section 106 agreements, which have historically contributed nearly half of all new affordable homes.

To address market challenges around section 106 delivery, the government urges social housing providers and developers to engage with the Homes England Section 106 Affordable Housing Clearing Service. With improved financial capacity from recent reforms, providers are expected to reassess their willingness and ability to take on unsold and uncontracted units. The government commits to working closely with housing associations, councils, and tenant groups in the months ahead to define a shared delivery ambition. This collective effort will be formalised later this year, ensuring the voices of tenants remain central to shaping the future of social and affordable housing in the UK.

[edit] Comments from Government

Deputy Prime Minister and Housing Secretary Angela Rayner said:

“We are seizing this golden opportunity with both hands to transform this country by building the social and affordable homes we need, so we create a brighter future where families aren’t trapped in temporary accommodation and young people are no longer locked out of a secure home.With investment and reform, this government is delivering the biggest boost to social and affordable housing in a generation, unleashing a social rent revolution, and embarking on a decade of renewal for social and affordable housing in this country.That’s why I am urging everyone in the social housing sector to step forward with us now to make this vision a reality, to work together to turn the tide on the housing crisis together and deliver the homes and living standards people deserve through our Plan for Change.”

Minister for Energy Consumers Miatta Fahnbulleh said:

“Everyone deserves to live in a warm, secure and affordable home, which is why we are setting out bold plans today to transform housing over the next decade. This includes proposals to introduce an energy efficiency standard for social housing for the first time ever, helping tenants benefit from cheaper energy bills and more efficient homes.”