Autumn Budget 2024: Reactions from the Housing Sector
Chancellor of the Exchequer Rachel Reeves today (30 October) delivered the first Labour Budget in 14 years, and made several announcements on how the government will tackle housing.
The key points:
- The government will invest more than £5bn to deliver their housing plan.
- This Budget will increase the Affordable Homes Programme to £3.1bn, provide £3bn worth of support and guarantees to increase the supply of homes and support small housebuilders.
- Investment has been promised to renovate sites across the country – including at Liverpool Central Docks – to deliver 2000 new homes.
- The government will give £1bn to accelerate the removal of dangerous cladding on homes, following the Grenfell Tower report.
- The government will reduce Right to Buy Discounts. Local authorities, meanwhile, will retain receipts from the sale of any social housing so that it can be reinvested into their existing stock and new supply.
Housing Industry Leaders asked the housing sector for their initial reactions.
Paul Dolan, Group Chief Executive of Riverside Group
“We welcome the Chancellor’s focus on affordable housing and taking the first steps towards achieving the government’s mission of building 1.5m new homes in today’s budget.
“The £500m boost to the Affordable Homes Programme (AHP) will help with delivery in the short-term but the acid test will come in next year’s Spending Review when long-term funding for the AHP will be decided.
“As one of the biggest developing housing associations, we stand ready to work with the government to achieve its house building mission, however we need the long-term financial certainty to match our commitment through a ten-year rent settlement and increased funding.
“We welcome the new investment in building safety and in homelessness prevention to ensure our customers can live in safe and secure homes.”
Jonathan Higgs, Chief Executive of Raven Housing Trust:
“We welcome today’s commitment to increased funding for the Social Housing Decarbonisation Fund as a crucial step towards creating more energy-efficient homes across the sector. Energy efficiency has been a central focus for Raven Housing Trust, where we’ve achieved significant milestones, including upgrading 88% of our homes so far to an EPC rating of ‘C’ or better.
“At Raven, we are not only committed to improving our own housing stock but also growing the supply chain and helping the wider community through initiatives like Raven Renewables, which supports other housing associations and organisations in meeting their sustainability and energy efficiency goals. This commitment goes beyond infrastructure; we recently launched a sustainability training hub for our tenants, where residents can learn about energy-saving practices and how to reduce their carbon footprint. This initiative empowers our tenants to take an active role in sustainability, helping them lower utility costs and contributing to a greener future.
“Today’s announcements from the government show a recognition of the urgent need for sustainable homes. We believe this needs to be paired with long-term funding and support to ensure all homes meet high efficiency standards.
“By leading by example and fostering a culture of sustainability, Raven is dedicated to building a legacy of energy awareness that benefits both our residents and the planet.”
Kate Hellens, Managing Director at North East affordable housing provider, Hellens Residential
“The government’s £500 million boost for the Affordable Homes Programme in today’s budget is a significant step forward in supporting much-needed regeneration and the affordable housing supply for individuals and families across the North East.
“While it’s a welcome move, the scale of housing needs remains substantial, and we must keep focusing on sustainable development for communities, which will hopefully be addressed when the government announces its revised NPPF, expected in the new year.”
Matt Cowen, Senior Associate, at social housing law firm Winckworth Sherwood
“The additional funding for social housing in today’s budget will be welcomed by RPs. In particular, the sector will be heartened to see a short-term injection of £500m into the current Affordable Homes Programme as well as a proposed 5 year CPI+ 1% rent settlement, providing longer term certainty on rents for RPs and those looking to invest into the sector. The proposed reforms to Right to Buy, reducing discounts and enabling Councils to again keep 100% of receipts, will also be well received by many across the sector.
“RPs will now be looking to the Spending Review and housing strategy review, both due to take place in Spring 2025, to provide details of a new ambitious AHP along with other tools to boost the delivery of affordable housing across the country, including a large proportion of social rented homes.
