Thousands more families will get the keys to quality social and affordable homes under the biggest boost to grant funding in a generation, along with energy-saving standards to cut the cost of living for millions of social tenants, the government has claimed.

Unveiling the government’s plans this week, the housing secretary Steve Reed said the new measures will give councils, housing associations and other providers greater financial support to ramp up construction of new homes.

Landlords will also have to meet robust standards to provide homes that are free of disrepair and damp, warm and energy efficient homes through a new Decent Homes Standard (DHS), updating decency standards for the first time in 20 years. This is on top of new requirements to upgrade properties under new Minimum Energy Efficiency Standards that could save social tenants hundreds of pounds every year on their energy bills, the government believes.

The latest update comes ahead of bidding opening next month for the£39 billion Social and Affordable Homes Programme (SAHP).

Steve Reed said: “Every new social home means one less family stuck on a housing waiting list. Building more social housing is crucial to fixing the housing crisis for good.

“But that’s only part of the story. We’re also driving up the quality of social housing so they’re well insulated and damp-free to keep families safe and cut their energy bills in the years ahead.

“I’m calling on everyone who has a part to play to build, baby, build.”

Councils who have not built in years will be empowered to start building, the government says, as it removes administrative costs of council housebuilding. And councils will be able to build up to 1,000 new homes without having to open a new housing revenue account.

The government also claims it is taking decisive action to unlock homes delivered through Section 106 agreements where no affordable housing provider is willing to buy, with a new emergency, time-limited approach that will allow the tenure of uncontracted Section 106 units to be varied in such circumstances.

In tandem, the government says it will work hand-in-glove with providers, councils, and developers to agree a framework to get the Section 106 market moving again, with new measures to reset and expand the market, simplify the process, and boost financial capacity of providers to buy these homes.

Alongside building more homes, the government says it is overhauling living standards for millions of existing tenants. A new DHS will apply minimum standards to improve the quality of all social homes, including the condition of roofs, doors and windows, and a more robust response to tackle damp and mould – building on phase one of Awaab’s Law to fix these hazards within strict timeframes. It will also apply to privately rented homes for the first time.

From 2030, social landlords will also be required to upgrade homes to meet new energy efficiency standards, and this could include improving insulation, putting in solar panels, or installing modern heating systems such as heat pumps. This will not only slash the cost of heating for families but also make homes warmer.

The government’s ambition is to deliver around 300,000 new social and affordable homes over the SAHP’s lifetime, with a target of at least 60% of homes for social rent. If achieved, the programme could deliver around six times more than the number of grant-funded social rent homes delivered in decade up to 2024.

Chief Executive of the National Housing Federation, Kate Henderson said: “Today’s announcements provide vital certainty for the social housing sector, delivering a serious, long-term plan for social housing.

“The reintroduction of rent convergence after ten years is both fair for tenants and will enable the social housing sector to build vital new affordable homes while increasing investment in existing ones. Alongside this, the commitment to strengthen Section 106 will ensure that affordable housing remains at the heart of mixed communities across the country.

“We welcome clarity on the new Decent Homes Standard and energy efficiency targets, which will give housing associations the confidence to continue planned work to improve the quality of their homes and bring down energy bills.

“We’re also delighted that today marks the launch of a new social housing taskforce, through which we will agree a compact to strengthen our long-term partnership with the government, local councils, and social housing residents.

“These announcements give our sector the confidence to deliver on our shared ambition of a generational boost to social housing.”

CEO of the Chartered Institute of Housing, Gavin Smart said: “We welcome today’s announcement of new funding and regulatory certainty for social and affordable housing, building on the 2025 Spending Review and supporting the delivery of more high-quality, affordable homes.

“We particularly welcome the new Decent Homes Standard, updating minimum standards for the first time in 20 years and strengthening action on damp, mould and energy efficiency – crucial to improving quality of life and reducing living costs for tenants.

“Measures to accelerate council housebuilding, increase financial flexibilities and reform the Section 106 market, alongside social rent convergence, should strengthen the sector’s capacity to invest in both new and existing homes.

“We recognise that delivery at scale will require strong leadership, careful planning, and collaboration across the sector. CIH will continue to support members to navigate these changes and deliver the government’s ambition for safe, decent and affordable homes for all.”

The government has also announced the process to agree a compact with the social housing sector, urging all providers to come forward with ambitious pledges to ramp up housing supply.  A new social housing taskforce, made up of key players from the sector, will hold the sector to account on delivering the biggest increase in a generation.

The government has already taken decisive steps to rebuild social housing finances by introducing a 10-year settlement, alongside giving social landlords equal access to government funding schemes to speed up the pace of remediation (the Building Safety Fund and Cladding Safety Scheme).

Jonathan Layzell, Chief Executive at Stonewater, said: “Today’s announcements from Government are a positive step for social housing, bringing together new investment in affordable homes with higher standards for the quality and energy efficiency of existing ones.

“The scale of ambition — including funding to accelerate housebuilding and measures to tackle damp, mould and poor insulation — is welcome and aligns with the sector’s shared focus on improving outcomes for customers. It will be important to understand the detail of the proposals, including how new low-interest loan arrangements and further measures to unlock Section 106 homes will work in practice, to ensure they are deliverable and supported by long-term certainty on rents and funding.

“Stonewater remains committed to investing in our existing homes, making them warmer, safer and more energy efficient, while also continuing to build the new affordable homes our communities urgently need. We look forward to working constructively with Government as the detail of these proposals is confirmed.”

Graeme Anderson, Chief Executive at Bromsgrove District Housing Trust, said: “Today’s announcement from government is a welcome step in recognising both the scale of housing need and the importance of improving the quality of existing social homes.

“In areas like Bromsgrove, where demand for affordable housing continues to grow and many homes are older and harder to heat, investment that supports both new supply and higher standards is particularly important. Measures to tackle damp, mould and poor insulation, alongside a stronger Decent Homes Standard, have the potential to make a real difference to residents’ health, wellbeing and energy bills.

“It will be important to understand the detail of the proposals — including how funding, loan arrangements and support to unlock stalled Section 106 homes will work on the ground — to ensure they are practical and deliverable for local providers.

“bdht is committed to investing in our existing homes while continuing to work with partners to deliver new affordable housing that meets local need. We look forward to working constructively with Government to ensure these reforms support long-term investment and deliver lasting benefits for our communities.”