Too Little, Too Late For Affordable Housing

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The announcement of £2 billion in grant funding for affordable housing will only cover the costs of building 1.2% of the government’s goal of 1.3 million homes, says tax and business advisory firm, Blick Rothenberg.

The government has already broken its pre-election promise to build 1.5 million homes by the next election.

Heather Powell, head of property at the firm, says: “Over 40% of affordable housing is delivered through S106 agreements. However, a lack of funding available to social housing providers means many schemes are being held up as the developers cannot identify a operator who has the funds to purchase the affordable homes.

“The government grant represents a contribution of an average of £55,555 per home for the target of 18,000 new social and affordable homes, a significant contribution to the cost of these homes which it is hoped will make schemes viable for the affordable sector.

“However, the process and timescale for delivery of the Grant Funding is unclear. Affordable housing providers are being asked to make applications for funding, yet no timescale is given for the turnaround of the applications.  One condition of the funding is that construction must start by March 2027 and finish June 2029”

Quicker planning needed

Powell adds: “Given the delays in the planning system and time needed to plan a development, the application system needs to deliver decisions promptly, allowing social housing providers to work in collaboration with developers. It is in the interest of all parties to ensure that a system of prompt review and decision making is in place to allow this initiative to deliver much needed new homes.”

Picture: Heather Powell.

www.blickrothenberg.com 

Article written by Cathryn Ellis
24th April 2025

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