With a doubtlessly vital uplift in housing supply on the playing cards, might or not it’s that the stars are lastly aligning in our trade?
One of the main headlines is the affirmation of grants — to be supplied by chancellor Rachel Reeves as a part of the authorities’s £39bn Affordable Homes Programme — which might assist ship 500,000 houses over a decade.
This is coupled with a raft of modifications to planning rules and an ongoing stream of revolutionary mortgage merchandise to assist make homeownership extra accessible.
It’s smart to mood our preliminary pleasure
While the dedication of serious funding is trigger for celebration, the satan is in the element. A considerable portion of the £39bn allotted to the social sector is earmarked for crucial repairs to current properties, retrofitting, compliance with post-Grenfell security measures, and extra.
It stays unclear how a lot of this sum will instantly translate into the development of recent houses, leaving a vital hole in understanding the true affect by way of the variety of items and when these might be delivered.
Additional alternatives
Another pivotal improvement on the horizon is the launch of the National Housing Bank — a government-backed initiative that’s anticipated to unlock greater than £53bn of personal funding.
In addition, £2.5bn in low-interest loans will probably be issued to help the constructing of social and reasonably priced houses, complemented by a £5bn grant from the new National Housing Delivery Fund.
The sector’s final success hinges on the swift and clear execution of those plans
However, once more we have to see how this pans out and interprets into precise figures to grasp the distinction it might make.
These newest developments are significantly vital for SME builders, which type a pivotal a part of the UK’s housebuilding ecosystem.
The newest figures from the National House Building Council point out that 124,144 new houses have been in-built 2024. With roughly 2,500 SME builders working in the non-public sector, simpler entry to long-term finance will probably be essential in serving to them contribute extra considerably to the housing provide.
We want to guard and spend money on SME builders, so it’s implausible to see this extra help offering entry to raised, longer-term funding.
Could or not it’s that the stars are lastly aligning in our trade?
The present trajectory appears like a rollercoaster — however one which appears to be heading principally upwards. The true extent of the affect of this funding will probably be felt solely as soon as extra concrete info emerges on funding allocation, supply timelines and the variety of items anticipated. Therefore it’s smart to mood our preliminary pleasure whereas we await the finer particulars.
Shared possession
There have been some constructive developments in the shared possession area, and I can not spotlight sufficient how a lot this initiative continues to be a crucial element of the housing supply resolution.
While shared possession has obtained its justifiable share of destructive connotations, many of those are all the way down to a lack of expertise and schooling. In truth, a latest ballot by SharedPossession.web revealed vital information gaps. A staggering 54% of individuals have been unaware of the deposit wanted, whereas 35.7% incorrectly believed this product was solely meant for first-time patrons.
There’s a vital hole in understanding the true affect by way of the variety of items and when these might be delivered
Encouragingly, housing associations are actively working to make the staircasing course of simpler and extra reasonably priced, and this dedication to constructive change was evident at the NSG Housing Lab London 2025. I used to be lucky sufficient to attend, and I used to be shocked by the variety of housing associations and suppliers eager to have interaction and enact constructive change for his or her prospects on this area.
Shared possession stays a key focus space for MAB in the coming months, and I’m excited to see the place it will take us.
Transparent execution
Although vital funding/supply commitments and ongoing product innovation and improvement supply compelling causes for pleasure, the sector’s final success hinges on the swift and clear execution of those plans.
While the dedication of serious funding is trigger for celebration, the satan is in the element
Addressing the want for readability on how new funding interprets into precise houses will probably be paramount. By making certain we’ve dotted the I’s and crossed the T’s, we are able to construct on the momentum we’ve created and guarantee a thriving, accessible housing marketplace for all.
Felicity Barnett is lender operations supervisor at Mortgage Advice Bureau
This article featured in the July/August 2025 version of Mortgage Strategy.
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