Affordable Homes Programme
Reeves confirmed the creation of a new scheme for England, backed by direct UK Government investment over the next decade. This funding is intended to increase housing supply, particularly for social rent, and comes alongside wider planning reforms aimed at unlocking land for development.
Towns and cities such as Blackpool, Preston, Sheffield and Swindon are already preparing bids to build. Local agents should closely monitor developments in their areas , as the pipeline of new builds will create new opportunities across sales, lettings, management, and valuation.
Affordable housing was positioned not just as a social good, but also as an economic tool. Kate Henderson, Chief Executive of the National Housing Federation, stated that the investment is “transformative”, highlighting its potential to reduce the welfare bill, boost the economy and create jobs. Reeves’ comments echoed this, with housing investment seen as part of a broader strategy for economic stability and growth.
Making promises into reality
Details on implementation are expected in the infrastructure strategy, which is due to be announced by the end of June 2025. Propertymark will continue to engage with the UK Government to ensure the voice of agents is heard as this funding is rolled out, and to advocate for the vital role our members play in delivering housing across all tenures.
High home energy costs will be addressed by improving energy efficiency through the Warm Homes Plan, which aims to help cut household bills by hundreds of pounds per year by upgrading homes through insulation, heating and solar panels.
We will also seek clarification on how these announcements will align with planning policy, housing targets, EPC targets, and local authority capacity – all critical factors in turning funding commitments into homes on the ground.
Trailblazer neighbourhoods
The Spending Review includes up to £20 million each for 25 places over the next decade as part of the UK Government’s Plan for Neighbourhoods. This initiative aims to empower communities to lead regeneration efforts, enhance local leadership, and strengthen social cohesion. The selected areas, including parts of Kingston upon Hull, Blackpool, Stockport, and Newcastle upon Tyne, will serve as exemplars for community-led development, receiving early support and investment to drive local improvements.
This funding is part of a broader £1.5 billion commitment to revitalise 75 areas across the UK, focusing on creating thriving places, stronger communities, and giving residents greater control over local decisions. The Ministry of Housing, Communities and Local Government will collaborate with sector partners to support these neighbourhoods, ensuring that previously overlooked areas receive the attention and resources needed for sustainable development.
Transport and infrastructure
£15bn in transport investment has been confirmed, including metro expansions in Birmingham, Tyne and Wear, and Stockport, plus support for Doncaster Airport. Reeves announced a four-year funding deal for Transport for London and pledged further commitments for Northern Powerhouse Rail. Additional plans include £2.5bn for the Oxford-Cambridge East-West rail line and £445m for Welsh railways over the next decade, aiming to reverse years of underinvestment.
Hotel accommodation for asylum seekers to end
The Spending Review also included a pledge to end the costly use of hotels to house asylum seekers within this Parliament. This will be funded by allocations in today’s plans and could lead to increased demand for appropriate residential accommodation, with implications for local authorities, housing associations, private sector landlords, and letting agents.
Economic balancing act
While the long-term outlook includes tens of billions of pounds in investment, the short-term picture is more constrained. Departmental spending will rise by an average of 2.3% in real terms annually, but health and defence will absorb a large portion of that increase. As a result, funding in other departments – including housing and communities – may remain tight in the near term, placing pressure on local delivery.
Investment in rejuvenating places up and down the country is welcome and ensures that people live, work and want to move into vibrant communities.
Propertymark also welcomes additional funding for affordable and social homes as we know this will help meet the UK Government’s ambitious housing target and have the knock-on effect of bringing down the cost of renting in the private rented sector.
Planning reforms must also work alongside a housing strategy which is much anticipated to be published by the UK Government to ensure we are building the right homes in the right places, and we can meet housing need up and down the country.
