Thousands of social and affordable homes to be built across England in £39bn plan.

Ministers have unveiled a comprehensive strategy to construct 70,000 social and affordable homes across England over the next decade, marking a significant initial stride in a broader £39 billion social housebuilding programme. This ambitious plan aims to deliver a total of 300,000 homes nationwide, directly addressing the country’s deepening housing crisis, which sees millions struggling with soaring rents, precarious living conditions, and the profound instability of homelessness. The first phase of funding, part of this monumental investment, has been strategically allocated to key growth regions including Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England, and Liverpool, with London receiving a substantial £6 billion share.

The announcement, while cautiously welcomed by housing charities as a "significant improvement," was immediately met with calls for greater ambition, with many asserting that the proposed numbers still fall short of the overwhelming demand. Critics from the Conservative party, meanwhile, swiftly labelled the initiative an "unfunded spending commitment," questioning its fiscal viability and long-term impact. This political tussle underscores the urgency and contention surrounding housing policy, a critical battleground in the national agenda.

The human cost of the housing crisis is starkly illustrated by stories like that of Natasha, a 22-year-old mother who endured the final months of her pregnancy and the initial weeks of her son Zayd’s life in the grim confines of a temporary hotel. Her experience is a poignant reflection of the approximately 1.34 million households across England currently languishing on social housing waiting lists, as highlighted by the latest government figures. Natasha’s despair is palpable as she recounts the unsanitary conditions, including an ant infestation in her room, which she repeatedly reported before finally being moved. Despite having her own bathroom, she is forced to share a single kitchen with around 60 other residents, a diverse mix that leaves her feeling unsafe, particularly with her newborn.

"I’m just scared when he gets older, when he starts crawling around, I can’t even allow him to crawl in such a place like that because it’s so dirty," she tearfully explained, describing her existence as feeling "like a prison." The lack of privacy is compounded by a strict no-visitors policy, isolating her from crucial support from friends and family during this vulnerable period. All she yearns for is "somewhere peaceful for him and calm. Somewhere nice where I can bring him up," a basic aspiration denied to countless families trapped in similar circumstances. Her plea encapsulates the fundamental need for stable, dignified housing that this new programme seeks to address.

The allocation of funds confirms London’s position as the largest beneficiary, securing £6 billion, though specific targets for the number of homes to be built within the capital have yet to be disclosed. Ministers have clarified that Monday’s announcement represents only the initial tranche of the 10-year programme, with more than £16 billion still slated for distribution to regions outside London in subsequent phases. This phased approach suggests a long-term commitment, but also raises questions about the pace of delivery. Housing Secretary Angela Rayner hinted at a renewed focus on local authority involvement, stating that she and the Prime Minister were "doing everything we can to get councils building once again." This echoes previous pledges, such as Andy Burnham’s promise for "the biggest council house building programme since the post-war period" in Greater Manchester, signifying a potential shift back towards direct public sector provision. The government has also committed to providing millions in additional support to councils, bolstering their housebuilding plans and offering crucial expertise.

However, a key ambiguity remains: the announcement stops short of detailing how the substantial funding will be split between council-built homes and those provided by housing associations. This distinction is vital, as while both contribute to social housing, council housing often provides the deepest levels of affordability and long-term security. The historical context underscores this point; in the 1950s, local councils were formidable builders, constructing almost 200,000 new council homes annually. Today, a stark contrast exists, with half of all councils no longer owning or building their own housing stock, a decline attributed to policies like Right to Buy and reduced government funding over decades.

The current output of genuinely affordable housing remains critically low. In 2024-25, just over 12,000 homes were built for social rent – while the highest figure since 2013-14, it pales in comparison to the estimated need. Organisations such as the National Housing Federation and various homeless charities consistently advocate for the construction of at least 90,000 social homes each year merely to keep pace with demand and begin to tackle the existing backlog. Social housing, encompassing both deeply affordable rented properties and low-cost home ownership schemes like shared ownership, is managed by social landlords, including local authorities and housing associations, providing a crucial safety net against market fluctuations.

Charlie Berry, a policy manager at the housing charity Shelter, while acknowledging the announcement as a "significant improvement," stressed that it was "not near the level we need to truly tackle that backlog and end homelessness." She expressed a desire for the Housing Secretary to commit to a clear annual target for the number of socially rented homes to be built, emphasizing the need for concrete, measurable goals. Beyond this specific programme, the Labour government has a broader ambition to deliver 1.5 million homes of all tenures by 2029. Despite rallying cries like "build, baby, build" – a phrase popularized by former housing secretary Steve Reed – current progress suggests the government is not on track to meet this overarching target.

BBC Verify, meticulously tracking the target through Energy Performance Certificates (EPCs) – a mandatory requirement for all newly created dwellings – found that approximately 203,000 new homes were delivered in England in the 12 months ending June 2024. To achieve the 1.5 million target over five years, an annual delivery rate of at least 300,000 homes is necessary, highlighting a substantial shortfall.

The Conservative shadow housing secretary, Sir James Cleverly, was scathing in his assessment, dismissing the announcement as "sleight of hand." He pointed out that "the small print shows homes won’t have to be delivered until 2039," suggesting a lack of immediate impact. Cleverly further argued, "Fewer homes will be delivered than previous programmes in this Parliament as social rent is more expensive. Labour have scaled back their affordable housing programme and expect us to thank them for it," challenging the perceived ambition of the plan.

Adding another layer to the political debate, the Conservatives have previously stated their intention to end the provision of social housing for foreign nationals in England if they return to power, estimating this would "free up" 228,144 homes for "British families." Reform UK, on Monday, echoed similar sentiments, announcing plans to prioritise British-born workers under 35 when allocating social housing should they enter government. However, Shelter swiftly countered these proposals, asserting that "there are already strict rules on who can access social housing" and that neither plan addresses the fundamental, underlying causes of the housing crisis, which stem from a chronic lack of supply rather than issues of eligibility. The comprehensive £39 billion plan, therefore, represents not just a financial commitment, but a complex challenge to overcome decades of underinvestment and policy shifts, with its ultimate success resting on both political will and effective execution over the long term.