Chancellor John Healey has delivered his first budget. Here, the housing sector reacts…

Jonathan Layzell, Chief Executive, Stonewater, said: “The announcements in today’s Budget will be welcome news for many of our customers – much-needed support on energy bills and wider cost of living measures will ease some of the burden faced by households across the country.

“It has been a significant year for the social housing sector, and we were delighted to reinforce our position as a key strategic partner for Homes England after being allocated £350million under the Social and Affordable Homes Programme. The confirmation of an additional £1.5 billion into the programme is a crucial signal that the Government recognises the appetite from the sector to deliver more in partnership with ambitious local authorities.

“As providers look ahead, what wasn’t in the Budget is just as significant as what was. Many of our customers have been able to halve their monthly energy bills thanks to retrofit works delivered, in part, through grant funding. With energy prices continuing to rise, the sector urgently needs clarity on the future of decarbonisation funding to ensure more people can benefit from warmer, more energy-efficient homes and lower household costs.

“And while the ongoing plan for devolution was referenced, the detail will be in the ‘Rewiring the State’ devolution white paper which has been delayed for several weeks. We urge the Government to publish this as soon as possible to give the sector the clarity it needs. We know that, as part of its devolution plans, Social and Affordable Homes Programme funding will be devolved to regional mayors, with an emphasis on new council housing. There is an opportunity for housing associations to place a crucial role, not just to support delivery of more affordable homes, but also to help upskill local authority staff and equip them to start delivering more council homes at speed.

“With over 1.3 million households on social housing waiting lists across England, more than 130,000 households in temporary accommodation, and council spending on temporary approaching nearly £3 billion every year, the urgent need for accelerated delivery of affordable homes cannot be understated.”

Andrew Cromb, Partner at Devonshires, said: “Devolution is central to the Burnham government’s agenda and that has been reaffirmed by this budget. This will see the role of local government in delivering housing significantly expanded, with the Chancellor announcing funding including a share of income tax and retention of 100% of local business rates to help accomplish this. Given the deeper reservoirs of expertise in industry, a further expansion of joint ventures is probably the likeliest outcome when it comes to translating this into the delivery of new houses, but the crucial factor will be how this funding is delivered to and then spent at the local level.

“The removal of VAT from land sold for social housing is a step in the right direction and should aid delivery by making land acquisitions more straightforward, allowing for greater flexibility before the construction reaches the ‘golden brick’ stage. The UK has, perhaps understandably, been criticised for the increasing complexity of its taxation regime, so simplifications of this nature that make life more straightforward are almost always welcome. Registered providers and local authorities will, however, need to carefully consider the current state of ongoing projects in light of this change, particularly any that currently depend on ‘golden brick’ agreements.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “The chancellor has today made life harder for renters right across the country. As the Office for Budget Responsibility has confirmed, hiking taxes will drive up rents and drive down supply in the rental market when demand is already way ahead of the number of homes available. How that fits with a commitment to providing households with more breathing space is anyone’s guess.”

Julian Hartley, group CEO of Joseph Rowntree Foundation, said:  “The government is right to make the cost of living a priority to improve living standards. People need to feel that paying the rent, heating their home and putting food on the table is becoming easier. Today’s Budget recognises that pressure but falls short of what’s needed. We live in an uncertain world and need long-term policies that build resilience for those who need it most. 

“Prime Minister Andy Burnham needs to restore the link between Local Housing Allowance and local rents, introduce a protected minimum floor in Universal Credit, and introduce an Affordable Energy Guarantee: a block of cheaper energy for every household.  Millions of households are going without the essentials. No government should accept that. Nor should it expect people to believe the country is getting better if their own lives keep getting harder. 

“Our latest research shows how insecurity can undermine people’s ability to perform at work and move into better-paid jobs. Families cannot keep being asked to wait for growth before their lives improve. Improving their lives is part of how we get that growth.” 

Lee Bloomfield, chief executive of Manningham Housing Association, said: “I was pleased to hear John Healey repeat the prime minister’s pledge to deliver the biggest growth in affordable housing numbers since the Second World War. However, both the chancellor and Andy Burnham must now be as good as their word. The chancellor has committed an additional £1.5 billion for social and affordable homes, taking the overall investment to more than £40 billion over next decade.

“These are impressive figures but seeing homes come out of the ground is now the ultimate test. I also commend the prime minister and chancellor for making tackling rough sleeping a cross-government priority under their watch. Manningham Housing Association stands ready to do everything we can to support them in achieving their worthy objectives on this. The pandemic proved that we could take people off our streets in the short-term.  Now is the moment to deliver a durable, long-term solution.”

Josie Parsons, chief executive at Local Space, said: “Today’s budget must ultimately be judged on whether it helps create lasting solutions to the housing and homelessness crisis, rather than simply managing its symptoms. Across London and the country, too many families are spending months or even years in temporary accommodation because there simply aren’t enough genuinely affordable homes for them to move into.

“We welcome further investment in social and affordable housing and the commitment to give local leaders greater powers and resources. The priority now must be turning that investment into homes, particularly in places like London where housing pressures are most acute, while ensuring councils and their partners have the tools they need to tackle homelessness and reduce reliance on costly temporary accommodation.

“At Local Space, we see the difference that a settled, secure home can make to people’s lives. We now need to build on today’s commitments and focus relentlessly on delivery, so that more families can move out of temporary accommodation and build a stable future in the communities they call home.”

Meanwhile, Rick Henderson, CEO of Homeless Link reacted to the government’s first-ever Rough Sleeping Summit and the announcement of £432 million designed to permanently end rough sleeping: “Giving people a route off the street this winter is an important, urgent and a daily priority for frontline homelessness services across the country. The Prime Minister’s pledge to lead these efforts has already given much needed political priority to tackling rough sleeping and breaking the cycle of the crisis of homelessness.”

 “Today’s summit will be judged in years to come if it’s seen as a turning point towards a more ambitious goal: a permanent end to all forms of homelessness. Today’s further funding announcements linked to longer term sustained support are also critical. It shows the Prime Minister has listened to the frontline services calling for the resource to turn that ambition into action.”

 “It is also extremely encouraging to see Government lead the way in building a diverse coalition to deliver on this ambition. We of course welcome the way that Government has been engaging with the Voluntary, Community and Faith sector, and look forward to this being a continuing dialogue as we move further into implementing plans to end rough sleeping. Few people understand their local communities better than the voluntary organisations embedded within them, and they must be equal partners in developing and delivering the solutions locally.”

 “And it was great to see trust and foundations, philanthropists, and private business all brought into play their role. These are all people who already engaged in the homelessness sector, but with Government bringing these different voices together we can look to breakdown some of the siloes that has limited progress in the past.”

“In that same collaborative spirit, we look forward to working with Government to ensure policy choices across Departments– whether that’s in social security, health, asylum, or elsewhere – priortise preventing homelessness.”

 “And we also welcome the acknowledgement that support must be sustained for years to come. And here we urge the Prime Minister, Secretary of State and his Ministers to look towards embedding a Housing First philosophy into plans for the next phase of this work. Recognising that for this to be sustainable we must ensure everyone has not just a bed and a home, but also the necessary support needed to keep it.”

 “The Value for Money review of government spending on homelessness presents an immediate opportunity to create a sustainable, efficient and effective funding model for homelessness services to enable this. One that recognises the value of the high-quality support services that can end and prevent homelessness, and so empowers our dedicated and skilled professionals to end and prevent homelessness in their communities, creating the sustainable change that we all want to see.”

 “The positivity of today’s announcement must act as a spur to turn Prime Minister’s welcome ambition into action. Homeless Link and our members are fully committed to working with all branches of Government and all other stakeholders to make that happen.”

Jonathan Pearson, director at Residentially, a chartered surveyors firm specialising in affordable housing, said: “Housing associations and developers have faced a difficult few years, and the new measures in today’s Budget will be crucial to helping them get on and deliver the number of homes our country desperately needs.

“The additional £1.5 billion for the Social and Affordable Homes Programme is particularly welcome. However, it’s not just about how much funding is being made available, but how soon housing associations can access it. Many of the registered providers I work with already have affordable housing developments they could progress if the funding was available, so bringing forward this investment will allow them to get these projects moving more quickly.

“The introduction of Your First Home, backed by £4.7 billion in government lending, is also good news, not just for first-time buyers but for the wider housebuilding sector. It should give developers greater confidence to progress developments, which will in turn help deliver more affordable and shared ownership homes. It’s encouraging that the government appears to have listened to concerns about the initially proposed household income caps, which risked excluding some of the very people the scheme is intended to help. It’s important that these caps don’t limit households who earn too much to qualify for support, but still can’t afford to buy on the open market.

“The recent increase in shared ownership income caps is also long overdue. I’ve seen first-hand how the current limits have led to housing associations having to reduce property values to attract eligible buyers, reducing the income they receive and their ability to develop more affordable homes.”

Michael Shapiro, partner at law firm Spencer West LLP, said: “The headline change for UK businesses is the help needed to protect the high streets we know and love – increasing the business rates threshold from £12,000 to £18,000.

“As we know that every relief needs a source to pay for it, it was perhaps a shrewd move to align this with taxes on gambling, and carving out adult games centres and vape shops from this relief. Business rates are to be devolved by the end of the decade so that 20% of revenue will remain in the area they are collected.

“These measures combined might encourage the smaller, independent, and artisan shops back on the high street and return them to thriving hubs of retail, leisure, and community through sustainable and longstanding businesses.

“On the face of it, not going ahead with funding business rate cuts through the mooted tax of warehouses run by large online retailers abates the risk of these taxes ultimately being passed onto the consumer.

“Pleasingly, for high street businesses and their customers, all of these measures should promote some level of confidence and certainty for the future.”

Fuad Mahamed, chief executive officer of ACH, said: “Investment in social and affordable housing is welcome, but we should see it as investment in people and our economy, not simply in buildings. A safe, stable home gives people the foundation they need to learn, train, find work and become active contributors to their communities.

“At ACH, we see that particularly clearly among refugees and migrants. When people have stability alongside the right employment, skills and integration support, they can move much more quickly from crisis and dependency towards independence and contribution.

“As the government looks for growth and better value from public spending, we need to connect housing investment with employment, skills and integration. Getting that right will not only help people rebuild their lives but strengthen communities, reduce pressure on public services and unlock talent that our economy badly needs.”

Cllr Kam Rai, Deputy Chair of London Councils, said:“A fair and prosperous London is essential to creating a fair and prosperous UK. Growth in the capital doesn’t just benefit Londoners – it raises living standards across the whole country.

“Boroughs needed a Budget that bolsters resources and turbocharges local delivery. Although the government faces a tough fiscal situation, empowering councils to drive local growth pays dividends for the national economy.

“Devolution should come as close as possible to communities. As London receives new fiscal powers – including keeping more of the money raised in business rates and income tax – London boroughs must have a key role. Boroughs know our communities best and deliver the crucial local services Londoners rely on every day.

“We therefore welcome the government’s commitment to working with boroughs as well as the GLA to develop a bespoke approach for London. Boroughs need to be equal partners with a formal say on devolved funding decisions alongside the Mayor so we can help ensure the best possible results across the capital.

“The overall outlook for London boroughs’ finances remains extremely difficult, especially due to skyrocketing social care and homelessness costs. We will continue to seek sustainable funding solutions to end the crisis in town hall finances, including through the government’s next Spending Review. Boroughs remain as committed as ever to working with the government on our shared priorities such as building more council homes, supporting more Londoners into work, and generating good growth in every postcode.”

Mark Perry, Chief Executive of VIVID, said: “For our customers, the real test of the Budget is whether it makes everyday life a little more affordable. With energy costs expected to rise, the measures to reduce electricity and gas bills, together with the additional winter payment, are welcome and should help those whose budgets are already stretched.

“We also welcome the additional £1.5bn grant programme top-up and the confirmation on changes to VAT on land sold for social housing. If these two interventions help get more schemes moving, it ultimately means more families having the opportunity to live in a secure, affordable home. The disappointment is the lack of action on Local Housing Allowance. Private rents have continued to rise, impacting those already affected by the long-term housing benefit freeze – addressing this would have made a real difference to people struggling with housing costs.”

Lee Parkinson, chief executive at Efficiency North, a social housing consortium that builds communities in the North of England, said: “The chancellor’s budget has left me cautiously optimistic that the government may have finally found a match between its long-claimed housing ambitions and the fiscal and policy measures needed to actually achieve delivery.

“We’ve heard Labour wants to get Britain building again and to solve the housing crisis but the detail and, most importantly, the funds have not yet been conducive to an increase in delivering more affordable, high-quality homes. However, today the tides may well be changing.

“Measures around funding, devolution, social value, and VAT attached to brownfield land transactions all demonstrate that the chancellor can see some of the issues that are central to the slower than anticipated progress when it comes to unlocking vital brownfield sites for development.”

Mairi MacRae, Acting Chief Executive of Shelter, said: “Huge funding boosts in the Budget to tackle rough sleeping and build more social homes are vital, but to deliver the biggest council housebuilding programme since the postwar period the government must go even further.

“With a record 177,000 children braced for another winter homeless in miserable temporary accommodation, building social homes at scale is paramount. Councils used to deliver thousands of new social homes every year, but the burden of an unfair historical housing debt means they’re shelling out millions in interest repayments to the government instead.

“Leaving councils saddled with needless debt while expecting them to build enough social homes is like asking them to drive with the handbrake on. The prime minister’s pledge to build more council homes will fall short unless the government removes this debt from council balance sheets.”

Jonathan Higgs, chief executive, Raven Housing Trust, said: “We welcome the increased investment in the Social and Affordable Homes Programme and measures to support first-time buyers into new homes. Together, these commitments have the potential to boost housing supply and create more opportunities for people struggling to access the housing market.

“But investment must be targeted where need is greatest. Areas such as Surrey and Sussex face some of the most acute affordability challenges in the country and cannot be overlooked as funding is allocated. The real test of today’s Budget will be whether it delivers more affordable homes in the communities that need them most.”

In a statement, Magna Housing said:  “Today’s budget recognises the continued pressure on household finances, and measures to help with energy costs will provide welcome support for many of our customers and communities. We particularly welcome the government’s continued commitment to increasing the supply of social and affordable housing. The challenge now is turning that national ambition and investment into the homes that people urgently need.

“Magna is ready to play its part. We have secured £250m through the Social and Affordable Homes Programme to support the delivery of 1,500 affordable homes across Dorset and Somerset over the next decade. That gives us both the opportunity and the responsibility to translate investment into high-quality, sustainable homes and thriving communities.

“Delivering at the scale the country needs will require continued certainty, strong partnerships and the right conditions for investment and development. By working with government, Homes England, local authorities and our partners, we can turn today’s commitments into lasting benefits for people and places across our region.”