31/10/2024
The Autumn Budget: A real test for affordable housing delivery
Helen Walsham, Deputy Chief Executive of Flagship Group comments on the details of the recent Autumn Budget and how it relates to the housing sector.
As we sift through the details of the recent Autumn Budget, it’s heartening to see that Chancellor Rachel Reeves has set out a framework for economic stability and social investment. With commitments to housing, healthcare, and workforce development, this budget lays essential groundwork for addressing the housing crisis. However, without decisive action and follow-through, bold numbers alone won’t translate into roofs over people’s heads. From where we stand at Flagship, we see hopeful signs but remain cautious; this budget can help deliver affordable homes, but only if we tackle the structural barriers that hold us back.
The commitment to £5 billion for new housing, including the additional £500 million for the Affordable Homes Programme, is a significant first step. The government’s target of 1.5 million homes is ambitious and necessary, but it’s also one that raises more questions than it answers. Financial backing is critical, but it’s only part of the equation. If we’re to meet these ambitious numbers, then planning, land use, and policy reforms need to accelerate at a matching pace.
Helen Walsham, Deputy Chief Executive at Flagship Group
Planning remains one of the most frustrating barriers to housing delivery. Trying to navigate the permission process can feel like “running a marathon through a swamp.” Hundreds of forms and lengthy bureaucratic procedures make it a near-impossible task to build at scale. The government’s consultation on transforming the NPPF and Labour’s focus on targeting ‘grey belt’ sites, along with the addition of 300 new planning officers, are all promising steps in the right direction. With further streamlining and expanded land use, we can make significant headway towards meeting this high target. It’s time we cut the red tape and set the gears in motion if we truly want to see this 1.5 million homes pledge materialise.
Affordability must remain at the centre of any meaningful housing initiative. In high-cost regions like Cambridge, even “affordable” homes pegged at 80% of market rents are simply out of reach for many families. However, the government’s commitment to future economic growth with £10 million in funding for the Cambridge Growth Company, to plan housing, transport, water, and wider infrastructure, provides a hopeful path forward. The budget’s rent settlement allowing increases of CPI+1% for social housing, while providing stability for providers, needs to be balanced with a solid commitment to social rents, typically around 60% of market rates. Housing isn’t just about physical structures; it’s about creating places where people can sustainably live and thrive.
Labour’s exploration of curbing the Right to Buy scheme, which has long depleted social housing stock, is also encouraging. We can’t continue selling homes faster than we replace them. Just as you can’t fill a bathtub without a plug, we can’t build our way out of the housing crisis if we keep draining resources away. Adjusting Right to Buy discounts to keep these homes in public hands is an essential reform, ensuring long-term availability of affordable homes.
Equally, the Budget’s additional social support initiatives, such as the £1 billion for Discretionary Housing Payments and the expanded Household Support Fund, offer a much-needed safety net for low-income families. These initiatives recognise that affordable housing cannot exist in a vacuum; households also need social protections to truly benefit from lower-cost housing.
Ellingham Green, one of Flagship's newest communities in Great Ellingham, Norfolk
The £3 billion directed towards small and medium-sized enterprises (SMEs) and the Build to Rent sector is a promising move. Lowering financing costs will empower SMEs to bring more rental properties to market, helping to meet the rising demand for homes. But, as always, this will only be effective if combined with planning reforms that prevent SMEs from getting bogged down in bureaucracy.
The Autumn Budget has shown that the vision for change exists and that some necessary funding has been earmarked, but the real test will lie in how swiftly and effectively these plans are implemented. As I’ve said before, Labour’s positive words won’t mean much without serious resources and a willingness to remove entrenched obstacles. Building 1.5 million homes is no small feat; it’s achievable, but only with a significant commitment to reform, investment, and practicality.
The ideas are promising, but now we need action. It’s time to turn the bold numbers on paper into real, sustainable, and affordable homes across the UK.