Yesterday, Chancellor of the Exchequer Rachel Reeves announced her first budget, providing an update on the state of the national economy and decisions around tax and spending.
As an organisation, we broadly welcome the new policies announced in the budget as a first step towards solving the affordable housing crisis, but believe the Government must do more to support housing associations.
Our chief executive Patrick Franco said:
“The UK’s affordable housing crisis is a national emergency that demands urgent action. We welcome the chancellor's £500m investment in the affordable homes programme and the initial investment of £3.4bn in the warm homes plan over the next three years. That said, the affordable homes programme funding falls short of meeting the sector's needs. Not-for-profit housing associations, responsible for 25% of new UK homes, face constraints that the government could easily resolve by unlocking unused grant funds.
“Previous rent settlements have not been honoured, resulting in the sector missing out on £40-£50bn that could have been invested in building new, truly affordable homes. The consultation on a five-year rent settlement with an increase of CPI +1% is a step in the right direction but it is the bare minimum that the sector needs. We welcome the government’s consultation on further potential measures and will strongly advocate for at least a 10-year settlement, which will provide the long-term stability and confidence required to support the government's target of delivering 1.5 million homes.
"The government's £1bn investment in remediation programmes to remove dangerous cladding is another important step for social housing providers, however it remains disappointing that social landlords lack equal access to the building safety fund. Housing associations are dedicated to offering high-quality, safe homes but the level of investment required is too high for social landlords to shoulder alone. Similarly, we had hoped that the government would address the section 106 scheme. The government must address the need for housing associations to be actively involved in the design stage and introduce viability subsidies that could lower acquisition costs or assist tenants with higher rents.
“The government's pledge to construct 1.5 million homes over the next five years is a potentially transformative step towards addressing the housing crisis. While today's budget marks progress towards this goal, further urgent action is needed if this target is to be met. Housing associations like Notting Hill Genesis are eager to play a key role in solving this issue, but our ability to do so hinges on stronger support and investment from the government.”
