Spring Statement highlights Autumn to do list

Originally written as a column for Inside Housing

There were by choice no policy announcements in the Spring Statement but the message about the government’s housing priorities could hardly have been clearer.

Chancellor Rachel Reeves had deliberately downplayed the significance of the statement, which was meant to be an update on the public finances rather than a full-blown Budget.

That meant that – with one exception – there were no background documents to wade through to find hidden announcements and hints about future policy direction.]

The exception came from the Office for Budget Responsibility (OBR), and the first message was about the key manifesto target of 1.5 additional homes in this parliament. 

Not a chance, says the OBR’s Economic and Fiscal Outlook: in the five years from 2025/26 to 2030/31 the independent watchdog forecasts there will be just 1.3 million net additions across the UK (30,000 higher than it forecast in November).

Net additions will fall in line with subdued recent housing starts to just 220,000 in 2026/27, it says, but then rise sharply to just over 305,000 by 2030/31 ‘reflecting the impact of planning reforms’.

That may sound closer than we thought to 1.5 million and the government will welcome the acknowledgement of the impact of its policies.

But eagle-eyed readers will already have spotted that the target is for England whereas the forecast is for the UK and that they cover different time periods.

Adjusting for homes built in Wales, Scotland and Northern Ireland only increases the size of the shortfall: England-only net additions will total around 1.1 million, 400,000 short of the target.

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Under starter’s orders

Originally written as a column for Inside Housing.

With neat synergy, the housing secretary and one of his more notable predecessors are both boasting about their record using perhaps the most inaccurate housing statistic out there.

First Steve Reed threw his ‘build baby build’ cap into the air at the news of an increase in housing starts. 

‘Thanks to our changes to planning laws we’re now seeing the green shoots of recovery,’ he said, ‘with an 18 per cent increase in work starting on new homes compared to the previous year.’

Then Robert Jenrick, the Conservative defector to Reform, took time out from making other political news to boast about his record six years (and six housing secretaries) ago. 

‘When I was housing secretary, I felt passionately that we should get young people on to the housing ladder,’ he told the BBC’s Laura Kuenssberg in an interview following his defection to Reform. ‘What did I do? I got housing starts in this country to the highest level in my lifetime. Way, way, way above what you see today under Steve Reed or Angela Rayner.’

Both boasts have a grain of truth in them – but both need to be accompanied by more than a few pinches of salt.

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Budget leaves big gaps to be filled

Originally written as a column for Inside Housing.

Even if it had not been leaked in advance, this Budget could have been defined as much by what was not in it as what was.

The astonishing mistake made by the Office for Budget Responsibility (OBR) in uploading a report containing all the key measures before chancellor Rachel Reeves had started speaking came after weeks of well-sourced stories about them.

We already knew the headline measures: the abolition of the two-child limit; a council tax surcharge on high-value homes; and freezing income tax thresholds.

They were joined on the day by a private landlord tax (higher rates of income tax on income from property), confirmation of more money for the Warm Homes Plan and a welcome move to tackle the ‘benefit trap’ facing tenants in supported and temporary accommodation. 

But the Budget delayed one of the decisions most eagerly awaited by  social landlords: they will now have to wait until January for the government’s final decision on rent convergence, in effect how quickly they can increase their lowest rents above the CPI plus 1 per cent limit.

Three months on from the consultation closing, the Budget background document explains that: ‘While the government remains committed to implementing social rent convergence, it is important to take the time to get the precise details right, taking account of the benefits to the supply and quality of social and affordable housing, the impact on rent payers and affordability.’

And there was no mention at all of the Local Housing Allowance (LHA) freeze, perhaps the housing issue raised by more organisations than anything else in the run-up to the Budget.

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Cracking the code on Section 106

Originally written as a column for Inside Housing.

For something so important, the Section 106 system of providing affordable homes seems to exist inside a black box. 

We know what goes in (developments all over the country, local councils trying to get the contributions they can) and we know what comes out (almost half of affordable homes delivered for year).

We also know that this is just part of a wider system for capturing land value not just for affordable homes but also community infrastructure and facilities.

But the inner workings of the system seem hidden.

This is most obviously true when it comes to the dark arts of viability assessments that allow experienced developers to run rings around under-resourced local authority planning departments.

But it can also be true in reverse, with the complexity of the system holding development back and sparking calls for reform.

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Missing the target and missing the point

Originally written as a column for Inside Housing.

A year into the government’s five-year target to build 1.5 million additional homes and signs of progress are thin on the ground.

Indicators of new  supply published on Friday estimate that 231,300 net additional homes were delivered in the just over 14 months between the start of the parliament on 9 July 2024 and 14 September 2025. 

At this rate, the government will struggle to hit one million additional homes in this parliamentary term, let alone 1.5 million.

Worse still, the supply indicators are currently moving in the wrong direction. In the first quarter of 2025/26 (April to June), building control reported completions were down 5 per cent on a year earlier while the number of energy performance certificates (EPCs) issued for new dwellings was down 14 per cent.

Further back in the pipeline, the number of homes granted planning permission fell 7 per cent in the year to the end of June to 221,000, the fourth annual decline in succession. 

The estimates published by the Ministry for Housing Communities and Local Government provide a more accurate picture of new housebuilding than the familiar starts and completions figures and a more timely one than the net additional dwellings statistics that form the basis of the target.

The official figures on net additional dwellings for 2024/25 will not be published until November but MHCLG estimates (based on EPCs for new dwellings but allowing for demolitions) that the annual total will be 199,300. That’s just over 100,000 below the annual rate required to hit the target.

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Exit Rayner, enter Reed

Originally written as a column for Inside Housing.

Angela Rayner is a huge loss for the Labour government and the country but arguably an even bigger loss for housing.

The housing secretary had to go after the standards advisor ruled that she breached the ministerial code by underpaying the stamp duty on her new flat, even if the breach seems inadvertent and minor by comparison with previous tax errors by ministers. 

Keir Starmer has lost someone who, after a difficult start, became a key partner on the left of the Labour Party as deputy leader and deputy prime minister.

Much like John Prescott in the early days of the Tony Blair government, her presence reassured Labour supporters that despite its modernising rhetoric the government had the interests of working people at heart.

Housing has lost a powerful voice at the top of government, someone who was in charge long enough to secure a favourable settlement in the spending review (even if it did not quite live up to her hype).

Would MHCLG have achieved as much without her? Housing might still have been a relative priority but probably not, I’d say.

Supporters of social and council housing – and those who need it – have lost an ally who knew its value from her own experience. 

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Does the spending review live up to the hype?

Originally written as a column for Inside Housing.

This spending review represents a good start on housing – but it must only be a start. 

Highlights of the package delivered by chancellor Rachael Reeves on Wednesday included £39 billion over 10 years for the Affordable Homes Programme (AHP) and a 10-year rent settlement of CPI plus 1 per cent for social landlords.

Then add a consultation on the return of rent convergence, £1 billon extra for cladding remediation and equal access to government funds, £2.5 billon in low-interest loans plus for social landlords. 

Stir and combine with £950 million for councils to increase the supply of temporary accommodation, £10 billion in financial transactions to boost private investment and more to come for infrastructure and land remediation in Cambridge and the new towns, and this looks like great work by deputy prime minister Angela Rayner and the Ministry for Housing, Communities and Local Government (MHCLG).

But does the spending review really justify the headlines and is it really as ‘transformative’ as some in the sector are making out?

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What’s at stake in the spending review?

Originally written as a column for Inside Housing.

With a week to go until the most consequential spending review for ten years, the Treasury is facing desperate last-ditch lobbying from departments that have yet to agree their settlement.

Last week’s public intervention by chief constables warning that the government will fail to meet its pledges on crime unless they get more cash is sign enough of that.

So too the leaked memo from deputy prime minister Angela Rayner setting out options for higher taxes that was inevitably followed by more leaks about her spending priorities.

As of this week, the Ministry for Housing, Communities and Local Government (MHCLG) was said to be one of the departments yet to agree a settlement, alongside the Home Office, with the Department for Energy Security and Net Zero just finalising one..

By contrast with previous spending reviews, housing starts with the advantage of having a politically powerful secretary of state in charge – and Angela Rayner has repeatedly promised ‘the biggest boost to social and affordable housing in a generation’.

But the ‘biggest boost’ can mean many different things, some of them genuine, some of them not remotely up to the challenge of the moment.

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Spring Statement glow could soon fade

Originally written as a column for Inside Housing.

Just for a change, housing looks like one of the winners from the Spring Statement – but is everything quite what it seems?

On housebuilding overall, the Office for Budget Responsibility (OBR) gave Rachel Reeves a big boost as it delivered a positive verdict on the planning reforms introduced by the government in the Autumn. 

The chancellor boasted in her speech that measures such as the new National Planning Policy Framework, the release of ‘grey belt’ land and the restoration of mandatory housing targets would permanently boost GDP by 0.2 per cent by 2029/30 and 0.4 per cent within ten years. 

She said: ‘That is the biggest positive growth impact that the OBR have ever reflected in their forecast, for a policy with no fiscal cost.’

Just as good for the chancellor was the watchdog’s forecast on housing numbers: ‘The OBR have concluded that our reforms will lead to housebuilding reaching a 40-year high of 305,000 a year by the end of the forecast period,’ she said. ‘And changes to the National Planning Policy Framework alone will help build over 1.3 million homes in the UK over the next five years, taking us within touching distance of delivering our manifesto promise to build 1.5 million homes in England in this parliament.’ 

The chancellor phrased that carefully but the Treasury press release was more gung-ho as it boasted that this would be ‘bringing the UK one step closer to its Plan for Change mission to build 1.5 million homes’.

That really would be good news, since almost nobody believes the target can be met, but read that paragraph again and you may spot a problem with it.

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A tale of three targets

Originally written as a column for Inside Housing.

What’s in a target? Angela Rayner faced questions at the Housing, Communities and Local Government Committee this week and gave some illuminating answers to kick off 2025.

First up was the target that is a key milestone in the government’s mission on economic growth: the manifesto promise of 1.5 million additional homes over this parliament.  

The deputy prime minister faced a series of questions about whether the target is achievable and what will have to happen in later years to make up the shortfall when fewer than 300,000 a year are built in the early years.

She ran through the measures the government is taking and summed it up in an unfortunate metaphor: ‘So there are a number of levers that we’re pulling at the moment which will hopefully start to turn the tide, but it’s a bit like the Titanic, it’s not like one of the Hackney cabs that can turn really quickly. It will take more time in the early stages before we start to see the shoots.’

It’s clear what she meant but it wasn’t a good start to conjure up images of icebergs ahead. Much better was her admission that: ‘Even If I achieve and this government achieves the 1.5 million homes target, it is a dent. It is a dent in what we need to achieve as a whole country, to deliver the houses we desperately need.’

It was also good that she acknowledged concerns about development by housing  associations and Section 106 while promoting initiatives to accelerate new homes and remove blockages on stalled sites. So too her emphasis on the importance of land value capture, the grey belt and the balance that has to be struck with viability. 

But 300,000 new homes a year has not been achieved since the heyday of council housing so I was intrigued to see what she would say about social housing in the present day. 

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