The Budget – a step in the right direction for housing but room for more
AG Insights
Jonathan Shaw,
CEO at Anderton Gables
The recent budget announcement by Chancellor Rachel Reeves includes some positive steps towards tackling the housing crisis. The £500 million boost for the Affordable Homes Programme and the goal of building 1.5 million homes over this Parliament are welcomed. Additionally, funding to unblock brownfield development and a consultation on a 5-year rent settlement for social housing providers are steps in the right direction.
Back in the summer, I shared with the connection on LinkedIn this snippet:
Construction projects starting on site in the North West in the quarter to June were down a staggering 42% on the same period last year – despite this I hear huge optimism around a post-holiday September and post autumn budget bounce – we shall see!
So, are we feeling optimistic after a bit of sunshine and the announcement last week?
It’s certainly been a difficult few months, but things are starting to lift. Off the back of the budget, we know that creating lasting solutions to the housing crisis means looking beyond new-builds and temporary funding boosts. A more effective approach would support not only the development of new properties but also the regeneration of existing ones, creating sustainable, affordable housing that meets the needs of today’s residents and tomorrows. To do this, investment should prioritise initiatives that enable modernisations, retrofit existing properties and improve energy efficiency – moves that would extend the lifespan and sustainability of our housing stock.
And if you were tuned into Martin Lewis on ITV last week, you’ll have seen his very useful breakdown on the stamp duty increases for second homes with further changes to follow in April 2025 which will affect most homeowners and even first-time buyers plus updates to the Right to Buy scheme. Click here for his take on it is all.
While these steps reflect a more proactive approach, we still need long-term investment and support for sustainable housing solutions. Increasing new builds is essential, but so is revitalising and retrofitting existing properties to ensure they meet today’s energy and efficiency standards. We’re committed to working with clients and partners who share this vision, and we welcome the government’s recent efforts. But addressing the housing crisis fully will take much more: a sustained, holistic approach that includes new builds, refurbishments and community-focused design.
Now to see how the world manages with Trump in charge once again…