By Catherine Kennedy, Head of Housing and Regeneration (Property), at Forbes Solicitors
Andy Burnham used his first speech as prime minister to commit to building “more council homes” and made ending rough sleeping his first ministerial instruction. It’s setting the tone for what could be the most significant shift in the UK’s social housing policy seen in a generation.
This isn’t a new ambition for the new PM. Before taking office, Burnham said that he wanted to deliver “the biggest council house building programme since the post-war period”. There is much debate on whether prioritising council housebuilding is the right approach to tackle the housing crisis, and what it means for the UK’s budget.
With details of any programme yet to emerge, housing teams have plenty to consider and prepare for in the coming weeks and months.
The legislative change needed to boost council housebuilding
One of the clearest levers available to the government is to look towards reforming how local authority housing finance works. Currently, funds allocated to local authorities for housing must be ring-fenced to prevent deficits, limiting councils’ ability to maintain or improve existing stock. Allowing councils to share general fund savings – such as spare budget generated as residents move out of costly temporary accommodation and into longer term secure social tenancies – could free up borrowing capacity needed to unlock new council housebuilding.
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Some of the groundwork is already in place. The Social Housing Bill announced in May 2026 limits and restricts the Right to Buy scheme, helping to ensure that affordable properties remain in the ownership of housing associations and councils for longer. Burnham has also suggested plans to compel the Treasury and other public bodies to release vacant, unused land at a discount specifically for the construction of council homes.
Two commonly-cited barriers to housebuilding sit alongside this: a shortage of skilled labourers in the workforce, which could be addressed with further investment, incentives, and apprenticeship-style programmes, and rising material costs, which will need to be factored into the budget for any programme.
How the commitment to end rough sleeping could impact statutory duties
If the government wants councils to end rough sleeping in their area regardless of eligibility and immigration status, then legislation is needed. This could be done by creating a new specific power. It could also be the removal of current restrictions on the use of the general power of competence, which is the broad legal power that lets a council do anything an individual could lawfully do, unless restricted elsewhere in the law. Any expansions of these powers would need to come with new funding.
Burnham has suggested adopting a Finnish-style “Housing First” model, which would also require a change to statutory duties. Finland prioritised immediate permanent housing over temporary accommodation, combining the construction of new-build homes, the purchase of existing properties, and the dismantling of the old temporary accommodation system.
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There is a template closer to home in Burnham’s previous political power base: Greater Manchester Combined Authority councils tackled temporary accommodation supply through the GM Empty Homes and Leasing Programme, which included funding to employ Empty Homes officers and to bring 400 homes back into use as temporary or settled accommodation.
Scaling this up will mean significantly higher spending and a much larger pool of available properties. Some local authorities already outsource housing duties to charities and housing associations in exchange for funding. This approach could give housing associations a use for vacant stock by leasing them to local authorities or selling them outright.
Staying ahead of Andy Burnham’s 10-year plan
Burnham has teased a 10-year plan, with more detail expected later this year. Given his commitments to housing policy, it’s likely to affect housing teams directly, as will wider pledges on a new economic model, education, mental health support, and the cost of living, which all carry knock-on effects for residents.
While awaiting policy announcements, housing teams can get ahead by reviewing land already in their ownership for development potential, with a brownfield-first approach already under way, unsurprisingly, in parts of Greater Manchester such as Oldham and Bolton.
The council housing commitments also sit alongside a wider devolution agenda, with more power and funding expected to flow to areas including Liverpool City Region, West Yorkshire, and the West Midlands. Local authorities and housing associations in these areas should keep a close eye on funding and powers that might become available to support housebuilding and wider housing aims.
Investment in planning capacity is likely to be needed to deliver at the scale suggested. For most local authorities and housing associations, the more effective approach may be developing partnerships and working together, rather than competing for the same land and funding.
What housing teams need to know
Competition for new-build affordable housing will increase
If council housing is genuinely to be prioritised, other housing associations and registered providers will find that competition increases for new-build affordable housing. Preston City Council is an early example of the direction of travel: having transferred its stock to Community Gateway Association 20 years ago, the council has recently registered as a social housing provider, committed £5m to acquiring social homes, and agreed the acquisition of 18 new-build homes.
Stock disposal agreements could reverse
Formal stock disposal agreements are now less common since most councils have already disposed of their stock. However, local authorities may now look to re-acquire it, giving housing associations a potential buyer for void or unwanted properties.
Grant funding for housing associations could be affected
Prioritising council housebuilding will cost local authorities and may reduce the amount of grant funding available for housing associations. There have been suggestions that part of the £39bn Social and Affordable Homes Programme could shift directly to local authorities, but this has not yet been formally proposed by the government.
Capacity and regulatory gaps may need filling
Some local authorities may also need support with regulatory requirements and ongoing tenancy and housing management. Many have not owned and operated council housing for years and may lack the capacity and skills. That gap is a potential opportunity for housing associations and registered providers to offer outsourcing services based on their expertise.
Brownfield sites in town centres could trigger other regulatory obligations
An approach similar to Finland’s would suggest the use of brownfield land that councils already own, much of it in town centres, to deliver affordable housing. Increasing density in town centres in this way could drive footfall and help to reverse high street decline, providing a boost to communities. It would also protect green spaces and green belt land from being developed. If that density takes the form of blocks of flats or other high-rise buildings, local authorities will need to ensure strict compliance with the Building Safety Act.
Burnham’s definition of “council housing” is still unclear
It’s not yet been specified whether Burnham’s definition of council housing extends to social housing delivered by housing associations. The sector will be hoping for quick clarification on this.
Act now, don’t wait for the detail
The current gap between the prime minister’s rhetoric and a working policy framework may be causing uncertainty for local authorities and housing associations, but his prioritisation of housing is clear enough, so that waiting for full details before acting would be a mistake. Local authorities can start reviewing land holdings and capacity now, and housing associations can start mapping where they’ll either compete or collaborate with councils for land and funding. The earlier the sector moves, the better placed it will be when the eventual new legislation finally arrives.
