Spring Statement - 2025

The key announcements for the housing sector in the Chancellor's Spring Statement last week were as follows:

1. 2bn grant funding
2. Construction workers scheme (£625m)
3. Benefits that the OBR think will arise from the planning reforms (NHHF and, for example, consequential new homes being built that otherwise wouldn’t) but this at no fiscal cost to the Government
4. Building Safety Levy - now to be imposed next year - to raise revenue to be spent on curing building safety defects in existing blocks

Kate Henderson, Chief Executive of the National Housing Federation has responded in the following terms:

“Today's Spring Statement clearly indicates that delivering new social housing is intrinsic to the Government's plans for growth. The £2bn down payment for new affordable homes is hugely welcome and vital in preventing a cliff edge in delivery, ahead of the new funding programme being announced at the Spending Review.  

Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing Government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the Government to deliver a generation of new social homes.  We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need." 

Taken as whole, the housing press contains a mixed response to the Government's announcements.  There is scepticism about the extent to which the planning reforms will result in annual housebuilding hitting a 40-year high and some commentators have gone further, explaining how they see the statistics as having been heavily manipulated to tell a particular story.

In respect of the ‘additional’ £2bn in grant for the coming year, many have flagged that this does not match current levels of investment nor does it account for the higher tariff that would be required for an investment programme that is intended to be re-geared towards social rent properties.

Of wider relevance are the significant cuts that were announced to the welfare budget and also the NHS reforms.  The cuts to welfare spend are seen as worrying by those on the front line supporting persons affected by the changes and managing the increased pressures that will inevitably arise for them.  

Of special interest and welcome news to CLTs and housing co-operatives, is the package of £20m to “directly support” the building of more than 2,500 community-led homes over the next 10 years.  This is coupled with the aspiration to generate match funding (in a sum equal to or greater than the Government's commitment) from the private sector, local authorities, and combined mayoral authorities.  The investment will be made into the Resonance Community Developers social finance fund for a 10-year period - Resonance Limited is an established social finance company with experience in supporting the delivery of community-led housing.    

What most seem to be agreed on, echoing the Nat Fed, is how important it is that the Spending Review in June builds on what we have seen this month and ushers in a significant and increased settlement for the housing sector as a whole.

For more information, please visit:

• Gov.uk - Spring Statement 2025 document
• Treasury announces additional £2 Billion Investment in Affordable Housing