Although social housing did not make headlines following todays budget, something that is unexpected considering the attention the sector has already been given earlier in the year, there were still several announcements with implications for the industry. We take a look at what key housing professionals have to say following the announcement:
Phil Andrew, Orbit Group Chief Executive commented:
“Given the positive housing measures announced in the Spending Review, it came as no surprise that today’s budget focused on driving other areas of economic growth. However, we remain confident in the Government’s continued commitment to tackling the UK’s housing crisis. Whilst it’s a positive sign that the OBR predicts that net additions will rise sharply in 2029-30, it’s also a firm reminder that making an impactful difference will take perseverance and time. We must continue to work together to deliver much-needed homes over the long term. At Orbit, we remain committed to playing our part, having recently increased our new build and regeneration commitment to 7,000 homes by 2030, an increase of over 20%.”
Northern Housing Consortium Chief Executive Tracy Harrison said:
“The budget was a missed opportunity to provide social housing providers with the clarity they need to deliver on Government’s generational £39bn investment in social housing from the Spending Review. Social housing providers in the North are ready to step up to the challenge but are still waiting critical details such as confirmation on the level of rent convergence, now delayed to January 2026, as well as the Warm Homes Plan, and final details of the Decent Homes Standard and Minimum Energy Efficiency Standards. All of this will impact how quickly the sector can build much-needed new homes.
“The Chancellor spoke about her commitment to tackle child poverty but has not taken action on the Local Housing Allowance (LHA) freeze. It is particularly problematic in the North with a higher-than-average number of people in the lowest income bracket living in the private rented sector. By keeping LHA at the same level while rents rise, the Government risks pushing more people, including children and families, into poverty. The continued freeze will increase the number of Northerners facing arrears, eviction, homelessness and temporary accommodation.
“It is good news for the North that the Government remains committed to devolution with further devolution of skills and growth funding and £1.3 billion of the new National Housing Delivery Fund to be allocated to Mayoral Strategic Authorities. This will help make sure funding addresses local needs and will further boost local collaboration and partnership working.”
Jonathan Layzell, Chief Executive at Stonewater, said:
“The Chancellor has rightly focused this Budget on tackling the cost of living. It is the necessary precursor to improving economic growth.
“So often that growth begins at home, and we need to build many more. The announcement of £48million for 350 new planners is a welcome step to unblock the system.
“Taken with the £39bn Social and Affordable Homes Programme announced earlier this year, the sector is well positioned to support the Government’s target of 1.5 million new homes.
“However, we would have liked to have seen the Warm Homes Plan published, as we know energy prices are one of the key factors impacting the cost of living for households across the country.
“We urge the Government to prioritise publishing the Warm Homes Plan as soon as possible, and to provide a long-term funding commitment of at least ten years. This stability is essential to unlock the supply chain investment needed for a sustainable, large-scale retrofit programme – one that cuts energy bills and eases pressure on the NHS by preventing illnesses caused by poor-quality homes.
“Stability in funding is vital. Not only does it allow us to build more homes, but it also helps us support existing customers feeling the strain of the economic climate.
“We also need to make sure investment reaches every community. Clear mechanisms are vital to address the housing crisis in rural areas, where the need is acute and delivery costs are high. We continue to ask the Treasury to ringfence a proportion of the Social and Affordable Homes Programme funding for rural locations where existing large-scale models simply do not work.
“Stonewater stands ready to work with the government to deliver these critical priorities. Success hinges on translating broad funding pledges into targeted, practical policy action.”
Lee Bloomfield, Chief Executive of Manningham Housing Association said:
“As a housing association which places a special emphasis on providing high quality affordable properties for larger families, the removal of the two-child benefit cap is positive news which will help to lift a sizeable number of children out of poverty.
“That said, I am concerned that many more people on the lowest incomes will be dragged into paying income tax by the Chancellor choosing to extend the £12,570 personal allowance threshold until 2031.
“Added to ongoing high inflation and an ever-increasing cost of living, this could have a particularly damaging impact on working families in the years ahead.
“It was also disappointing that, as one of the Government’s supposed top priorities, house building was absent from this Budget which I hope is not a sign that it has fallen down its policy agenda.
“The additional funds allocated to the West Yorkshire Mayor to invest in local areas is certainly welcome and I, along with colleagues in the West Yorkshire Housing Partnership, will be engaging with Tracy Brabin and her team to discuss how communities in Bradford and Keighley can benefit from these monies.”
Dan Bebbington, debt and energy manager at Housing Plus Group, said:
“Scrapping the two-child limit for households claiming Universal Credit will help many families struggling with the cost of living. It will ensure children are no longer disadvantaged simply because of family size, and provide much-needed breathing space for parents managing tight budgets.
“However, Universal Credit will still be subject to the overall benefit cap, as Child Benefit counts as income. In some cases, this could mean families may see little or no financial gain from having additional children added to their claim. For households outside London, the maximum amount of benefits a family can receive is £1,835 per month – unless they meet the required work threshold or receive certain exempt benefits.
“Scrapping the two-child limit for households claiming Universal Credit is a welcome relief to lower-income families struggling with the cost of living.
“It will lift hundreds of thousands of children out of poverty over the next few years, ensuring they are no longer disadvantaged simply because of family size, and provide vital breathing space for parents managing tight budgets.
“The rise in the national living wage to £12.71 per hour will put more money directly into the pockets of working people, though it’s still below the £13.45 that the Real Living Wage Foundation says people need to earn in order to meet the current cost of living.
“However, extending the current tax thresholds freeze means many households will have less money in real terms due to fiscal drag. As wages rise, more people will be pulled into higher tax bands, reducing the benefit of pay increases and leaving us with less disposable income. Coupled with the introduction of National Insurance contributions on salary sacrifice pension contributions over £2,000 a year from 2029, many workers will be left feeling let down by today’s Budget.
“I am however pleased to see action being taken at last to bring energy bills down. Energy costs remain one of the biggest burdens for households we support, and any reduction will make a real difference.
“Overall, there are certainly things to be positive about, but huge challenges remain. At Housing Plus Group, we see daily the impact of the rising cost of living on our customers, and we welcome measures that reduce financial stress and improve people’s quality of life.
“We encourage anyone worried about how these changes affect them to seek advice and support.”
