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There is a significant shortage of affordable housing in the UK, with over 1.3 million people on social housing waiting lists and 165,000 children living in temporary accommodation. The Government's new ten year, £39 billion Social and Affordable Homes Programme (SAHP) promises the delivery of the biggest increase in supply in a generation, aiming to deliver 300,000 new homes over the next decade, with at least 60% (180,000) allocated for social rent.
As the sector awaits the detail expected in the Autumn Budget on 26 November, this article explores the proposed policy changes, and the challenges and opportunities for registered providers (RPs), investors, and local authorities.
The Social and Affordable Homes Programme: ambition and structure
The SAHP marks a major increase in Government investment, nearly doubling previous annual funding levels. With its commitment to deliver 300,000 new homes, the programme aims to transform affordable housing provision across the UK.
A key feature of the SAHP is its regional emphasis, as 70% of funding will be allocated outside London. This approach is supported by flexible delivery models, enabling regeneration projects supported housing, community-led initiatives, and rural developments to address diverse local needs.
The full SAHP prospectus is expected this autumn. RPs are exploring opportunities and preparing draft development plans but cannot finalise them until the announced changes are confirmed.
Improving quality, safety, and energy efficiency
The Decent Homes Standard is undergoing a major overhaul, with new requirements for safety and energy efficiency.
The new standard is expected to be published this year, although it will not come into force until 2035 at the earliest. This is coupled with the proposal to set a minimum energy efficiency standard (MEES) for socially rented homes which will increase retrofit pressures.
The introduction of Awaab's Law (Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025) from October 2025 will also mandate swift action on damp and mould hazards, ensuring tenants live in safe and healthy environments.
Quality and safety are quite rightly at the heart of the government's vision for social housing, but this of course presents challenges for RPs who need to bring large quantities of stock up to the required levels. To address these challenges, we anticipate seeing more collaboration across the sector, where institutionally backed registered providers and private capital partnerships can help release capital for traditional registered providers to upgrade existing homes, poling expertise, resources and financing to deliver at scale.
Another welcome change is that social landlords will also benefit from equal access to building safety remediation funding, matching the support available to the private sector.
Unlocking capacity: institutional investment and partnerships
Delivering a decade of renewal of social and affordable housing is an ambitious ask, coupled with a request that everyone with a role in social and affordable housing – including RPs, investors, developers and housebuilders, regulators and of course central government step up deliver at scale and at pace.
Institutional investors are playing an increasingly important role in the affordable housing sector, with For-Profit RPs and joint ventures bringing new capital and expertise, helping to bridge funding gaps and deliver/upgrade homes at scale.
Creating a level playing field in terms of tax and grant treatment for For-Profit RPs will further encourage investment and innovation. Collaborative models between RPs and investors are proving effective in supporting refurbishment and new build projects, driving forward the sector's capacity to meet demand and anything that can be done to encourage this would be welcomed.
The future of affordable housing in the UK
With increased funding, policy certainty, and a renewed focus on partnership, the sector is poised to deliver real change. By harnessing institutional investment, targeting subsidy effectively, and putting tenant experience at the centre.
Read the original article on GowlingWLG.com
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