Angela Rayner’s plans for ‘council house revolution’ welcomed

Social housing plans announced by the Deputy Prime Minister as part of Labour’s overhaul of planning have been welcomed by organisations working with those most impacted by a shortage of homes.

Angela Rayner described the Government’s overhaul of the planning system as “the biggest boost to social and affordable housing in a generation”.

Although not stating a specific figure as a target for the number of social homes to be built annually, Ms Rayner stated an “aspiration” that in 2025-26, which is the first full financial year of the new Parliament, the number of social rent homes “is rising rather than falling”.

Housing charity Shelter said this could potentially mean doubling the supply of social homes in a year.

In a written statement published on Tuesday, Ms Rayner said that as of 2023, there were 3.8 million social rent homes, which is 200,000 fewer than the four million that existed in 2013.

She quoted what she said were revised figures, showing that “only 110,000 to 130,000 homes are now due to be delivered under the Affordable Homes Programme, down from an aspiration of ‘up to 180,000’ when it was launched”.

Liberal Democrat deputy leader Daisy Cooper, speaking in the Commons in response to Ms Rayner’s announcement, described a “conspicuous absence of a particular target on social homes – not affordable homes but on social homes”.

The Liberal Democrats have repeatedly called for a target of building 150,000 social homes a year.

Charities such as Shelter have long set out a target of 90,000 social homes a year, which they said is “necessary to end homelessness and relieve the extreme pressure on private renting”.

They said building 90,000 social homes “would pay for themselves in just three years and return an impressive £37.8 billion back to the economy, including through jobs, savings to the NHS and the benefits bill”.

The plans – which Ms Rayner said would “deliver a council house revolution” – include countering the decline in the number of social and affordable housing through new flexibilities for councils, including allowing them to use their right-to-buy receipts to build and buy more social homes.

Details of Government investment in the form of direct grant funding for social and affordable housing, as well as on rent stability, will be brought forward at the autumn Spending Review.

Ms Neate said: “Every year we lose more social rent homes through sales and demolitions than we build, so the government’s commitment to reversing this could effectively mean doubling the supply of social homes in a year.

“The decision to set a clear expectation and target on social rent homes at a local level lays the foundation for councils and developers to deliver the housing communities so desperately need.

“We now need to ensure developers are delivering their fair share of genuinely affordable social homes, and not dodging their commitments.

Riverside, an affordable housing developer and provider of homelessness services and supported housing, welcomed the Government “taking on the challenge of planning reform to help build the homes and infrastructure the country needs”.

But the organisation said while planning reform is “important for unlocking growth”, for the record high number of families stuck in temporary accommodation in England “the funding of new social housing is even more important”.

John Glenton, its executive director, said a publicly-stated target for how many social homes must be built “creates pressure on the system to deliver the goal”.

He said: “As well as the target for 1.5 million homes over the course of this Parliament we believe an annual target should be set for the delivery of new social homes to create a greater impetus to build society’s most affordable homes.”

The Local Government Association, which represents councils, said Labour had “laid out some positive first steps on affordable housing”.

Claire Holland, LGA housing spokesperson, said: “Homelessness and the lack of affordable housing is one of the most pressing issues facing councils. Urgent action is needed to ensure more housing is built to meet growing demand.”