Government allocates funding for 70,000 new social and affordable homes

The UK government has announced the locations for 70,000 new social and affordable homes to be constructed across England over the next decade. This allocation represents the initial phase of a broader £39 billion social housebuilding programme, which aims to deliver a total of 300,000 units nationwide. The move is intended to address the ongoing housing crisis, with specific funding granted to Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England, and Liverpool. London will receive the largest share of the investment, amounting to £6 billion, although the precise number of homes to be built in the capital has not been disclosed.

Of the 70,000 homes announced, 60 per cent are designated for social rent. This category of housing offers units at approximately half the cost of market rents, subject to strict eligibility criteria for applicants. Prime Minister Andy Burnham stated that the initiative is driven by the belief that no child should be raised in a hostel room and that every family deserves a secure home. He emphasised that providing good housing is a fundamental priority of his administration. However, the announcement has not resolved all concerns, as homelessness figures in England have continued to rise to record levels under the current government. Data released earlier this month indicated that 177,530 children were living in temporary accommodation.

The personal impact of the housing shortage is illustrated by the experience of Natasha, a 22-year-old mother living in a hotel in Milton Keynes. She has resided there for four months with her five-week-old son, Zayd. Natasha described her living conditions as akin to a prison, noting that she shares a kitchen with around 60 other residents and has no visitors. She expressed concern about the safety and hygiene of the shared spaces, particularly as her son begins to crawl. Her situation is part of a wider issue, with 1.34 million households currently on social housing waiting lists as of March 2025.

Housing Secretary Angela Rayner indicated that local councils would play a significant role in the construction of these new homes. She stated that the government is working to enable councils to build again, a strategy that aligns with the Prime Minister’s previous promise of the largest council housebuilding programme since the post-war period. In the 1950s, councils built nearly 200,000 homes annually, but currently, half of all councils do not own or build their own properties. In the 2024-25 period, just over 12,000 homes were built for social rent, the highest figure since 2013-14. However, housing charities and the National Housing Federation have previously estimated that at least 90,000 social homes are required each year to meet demand.

Reaction to the announcement has been mixed. Charlie Berry, policy manager at housing charity Shelter, described the plan as a significant improvement but noted that it is not near the level required to tackle the backlog and end homelessness. She called for a specific annual target for socially rented homes. The Conservative Party criticised the initiative, with shadow housing secretary Sir James Cleverly describing it as a sleight of hand. He argued that the small print allows homes to be delivered as late as 2039 and that fewer homes will be built than in previous programmes because social rent is more expensive. He claimed the government has scaled back its affordable housing programme.

The Labour government has also pledged to build 1.5 million homes by 2029. However, recent data suggests the government is not on track to meet this target. BBC Verify analysis of Energy Performance Certificate data indicates that about 203,000 new homes were delivered in England in the 12 months ending June 2026. To reach the five-year target, at least 300,000 homes would need to be built annually. Meanwhile, opposition parties have proposed changes to social housing allocation. The Conservatives have stated they would end social housing provision for foreign nationals if elected, estimating this would free up 228,144 homes. Reform UK has announced similar plans to prioritise British-born workers under 35. Shelter responded that strict rules already exist for accessing social housing and that neither proposal addresses the underlying causes of the housing crisis.