Government unveils new social and affordable housing package

“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.”

Gavin Smart, CEO of the Chartered Institute of Housing:  

“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.”

Jonathan Layzell, CEO of Stonewater:

“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 are confirmed.”

Graeme Anderson, CEO at Bromsgrove District Housing Trust:

“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 needs. 

“We look forward to working constructively with Government to ensure these reforms support long-term investment and deliver lasting benefits for our communities.”