Social housing is in the spotlight after Chancellor Rachel Reeves addressed the urgent need for affordable housing in the 2024 Budget. There are high hopes for economic growth and social progress, with the increase in funding and support for tenants. However, the funds will need to be used efficiently to meet the demand for affordable homes and improve existing stock. The funding package targets the development and refurbishment of social housing. The Affordable Homes Programme has received a significant boost, with an injection of £500m to develop up to 5,000 new social homes. This initial step represents 0.3% of the Government’s target of 1.5m new homes over five years.

Local authorities will receive £1.3bn to enhance essential services, with £233m to tackle all forms of homelessness. Investments in temporary housing are expected.

The Government faces numerous challenges when it comes to social housing, including the increasing cost of property maintenance and rent decreases. The Right to Buy scheme led to a shortfall in the supply of social housing, which this budget has aimed to address. Local authorities are now expected to save nearly £1.2bn as Right to Buy discounts will be reduced and they will keep the full receipts of the sales. This saving presents an incentive to build new homes. Changes to fiscal investment rules could also free up investment for new affordable housing.

Critics maintain that the fundamental problems demand a radical approach, from overhauling housing policy to taking on developers. Housing associations maintain that private sector property developers should be forced to sell their Section 106 agreements at cost instead of operating on 40% profit margins. Even with planning reforms, developers might not drop their prices further.

Tenants will benefit from stabilized rent due to a five-year rent settlement of the Consumer Price Index (CPI) plus 1% for social housing providers. This change will help to ensure that housing is affordable and assist social landlords with long-term planning, including safety upgrades.

Observers note that housing associations are facing various demands and capping annual rent increases might not make much difference. Build-cost inflation is rising more rapidly than CPI and rent caps mean that housing associations are restricted, operating on thin margins.

Many social landlords own properties that are in need of investment. Recent regulatory focus on fire safety, including the Fire Safety Act and Building Safety Act, makes robust fire door solutions a high priority for housing providers. Social landlords will need certified fire safety products to meet their obligations.

By collaborating with social housing providers and staying ahead of compliance changes, we support the sector’s push toward safer, more secure living environments.