Spending Review 2025: what it means for social housing development

The eagerly anticipated announcement of future Affordable Homes Programme funding, integral to the new Spending Review 2025, has finally provided some clarity on how planned schemes within the Social Housing Sector might be unlocked to proceed.



The announcement of £39.5 billion funding over 10 years has provided an answer to the cacophony from across the construction and development sector which has, in recent years, been calling for a longer -term settlement than that of previous programmes. Used strategically, this increased period, with an amount significantly higher than the previous annual equivalents, should result in more problematic sites being brought to market – in line with the planning focus on developing both brownfield and the recently coined ’grey belt’ sites. There is evidence that such sites have often been left by the wayside when viability issues prove problematic, in favour of accelerating previously undeveloped sites with less abnormal costs. Whilst other streams of funding will still be required to bridge particular gaps, this funding period, in conjunction with the announcement of a 10 year rent settlement, should go some way towards smoothing the path to increasing numbers of starts on site required to renew and grow the Social Housing development sector for both Registered Providers and Local Authorities alike, increasing the numbers of new grant funded homes available for Social Rent,  Affordable Rent and Shared Ownership.

Spending Review 2025

Forbes Housing Group provide a complete specialist service to the Social Housing sector across every region of the country. Our large team of experienced practitioners work with in-house teams at Registered Providers of Housing and Local Authorities on all their development project and asset management requirements , extending to all aspects relating to construction, governance, funding , joint venture and public private partnerships.