by Kim Pidgeon | Jun 15, 2025 | News
The letter covers main elements of the government’s social and affordable housing investment strategy…
The Minister of State for Housing and Planning, Matthew Pennycook MP, has written to all registered providers of social housing following the conclusion of the Spending Review 2025.
The letter details grant funding, rent settlement, building safety, warm homes, homelessness and housing quality.
Grant Funding:
The letter confirms £39 billion for a successor to the Affordable Homes Programme over ten years starts from 2026-27 to 2035-36.
It makes clear that the £39 billion announced is all new money for this Spending Review and beyond, over and above the £12.3 billion budget for the AHP between 2021-2026.
It includes the £2 billion ‘Bridge’ funding in 2026-27 – a downpayment on the investment announced at the spending review.
It does not include the tail of funding already committed to individual social landlords under the previous programme. That will be an additional circa £2 billion for payments from 2026-30, linked to completions of homes under the current 2021-26 AHP.
The programme will prioritise homes for social rent but will also fund a mix of tenures including affordable rent and shared ownership.
The Spending Review also sets out that there will be £2.5 billion in low-interest loans to support new development, to complement commercial lending.
Rent Settlement:
The letter confirms the government will permit social housing rents to increase by CPI+1% each year from April 2026.
It states: “In order to give Registered Providers, lenders, and investors greater long-term certainty, and in light of the responses to the consultation we carried out last Autumn, we are doubling the length of the settlement from five to ten years.
“In response to the consultation carried out last autumn, providers were clear that the level of investment in new and existing social housing that is needed to deliver on the government’s ambitions would not be unlocked, unless a rent convergence mechanism is reinstated.
“Such a mechanism would allow rents on social rent properties that are currently ‘below formula’ (i.e. lower than the usual maximum that may be charged when a property is let to a new tenant) to increase by an additional amount, over and above the CPI+1% limit, up to formula level. This would be far fairer than a higher across the board rent increase, as it would only ask those who currently pay lower rents to pay a bit more.
The government is therefore announcing that it will implement a convergence mechanism as part of the new rent settlement.”
Building Safety:
“We will invest over £1 billion in social housing remediation and make it significantly easier for social landlords to secure upfront capital for remediation through government schemes,” the letter states.
“We have already identified many buildings that would benefit. Social tenants expect and deserve to feel safe in their homes – this investment will mean that remedial works can be completed much sooner, and that at the same time social landlords will be able to supply more of the new affordable homes that the country needs.”
Homelessness:
The government is providing £100 million through the Transformation Fund for early interventions to prevent homelessness. It is also providing £950m capital for the fourth round of the Local Authority Housing Fund (LAHF).
Housing Quality:
“I recognise that alongside confirmation of the funding packages detailed above, providers need certainty on the regulatory environment they are operating in, to manage their finances and increase ambitions on new supply,” writes Matthew Pennycook.
“We will enable long-term investment in the sector with regulatory clarity by consulting soon on the Decent Homes Standard, Minimum Energy Efficiency Standard, and how we will implement convergence and will set out detail on Awaab’s Law.”
Read the letter in full here.
by Kim Pidgeon | May 29, 2025 | News
Find out the latest news from housing associations Abri and Gentoo…
Abri on track for 10,000 homes target
Housing provider Abri is over half way to their target of building 10,000 homes by 2030.
The south of England housing association made the commitment in April 2020 to its ten-year development programme.
It’s one of the largest housing providers in the south with 50,000 homes and assets and 114,000 residents living in them.
Abri built 5,196 homes between 2020-25 with at least a further 4,972 homes expected to be completed in the next five years.
3,895 homes are already under contract in Abri’s current development pipeline which will take them over their 10,000 homes target by 2030.
Since April 2020, Abri has spent more than £1.1billion on its development programme and a total investment of £2.5 billion will be made over the ten-year period to reach 10,000 homes.
“Abri is committed to supporting more people to access a good quality, warm and sustainable home which we know provides a critical foundation for health, wellbeing and prosperity”, said Jo Makinson, Chief Investment Officer at Abri.
“In a challenging market, we are proud to have delivered 5,196 homes, helping thousands more individuals and families achieve a safe place to call their own.
“Thank you to all our colleagues and partners for their dedication and collaboration in reaching this important milestone. Together, we’re not just building houses, we’re creating supportive and sustainable communities where people can thrive.”
Of the 5,196 homes built, 4,490 of these were affordable homes with 2,459 for affordable and social rent and 2,031 homes available through shared ownership.
Over the five years, Abri sold 1,598 homes and completed 811 staircasing transactions to help customers increase the equity in their home. Abri’s in-house construction team has built 266 homes.
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Gentoo spending over £40m to improve homes by end of 2026
Gentoo have announced a £44 million investment programme to improve more than 4,000 homes in Sunderland.
The home improvements will be carried out throughout 2025/26 and include external decoration, roof replacements, new gas boilers and heating system installations, new kitchens and bathrooms, energy efficiency improvements and electrical rewires.
Housing association Gentoo provides more than 60,000 people in Sunderland with homes.
The investment plan focuses heavily on improving the energy efficiency of its properties to achieve EPC C, including fitting loft and cavity wall insulation, low energy lighting, solar photovoltaic (PV) panels, air source heat pumps, heating controls and work to improve ventilation and draught proofing.
Energy efficiency work will be part funded through the Warm Homes Social Housing Fund
The announcement follows the launch of the housing association’s Gentogether partnership, which over the next ten years will deliver £170 million of internal modernisation works to improve thousands of homes, in partnership with PHS Home Solutions, RE:GEN North East and Esh Construction.
by Kim Pidgeon | May 15, 2025 | News
Work will begin later in the year on the development in Yardley
Nearly 300 affordable homes, including 150 for social rent, are to be built on the site of the former Yardley Sewage Works in Stechford.
The land in Cole Hall Lane is owned by Birmingham City Council, who have worked with housing association Midland Heart, housing developer Morro Partnerships, Homes England, the region’s Mayor and the West Midlands Combined Authority (WMCA) to facilitate the deal.
Birmingham City Council, Homes England and the WMCA have invested in the scheme, providing funding to clean up the brownfield site so it is suitable for house building.
Morro and Midland Heart will begin construction of the homes before the end of the year.
The deal comes as figures show that across the West Midlands there are 7,148 households, including 14,229 children, living in temporary accommodation and 65,335 households on the region’s social housing waiting lists.
On a visit to the site, Richard Parker, Mayor of the West Midlands, who announced a £4.5m WMCA package for the development, said: “In my first year in office, I’ve funded schemes that will provide more than 500 new social homes – that’s more than in all the schemes we have ever grant funded.
“Too many families in this region are living in cold, damp houses waiting too long for a home to call their own. This cannot be allowed to continue which is why I am helping to build more warm and safe homes for everyone.
“My target is clear: 2,000 new social homes a year by 2028 to tackle our housing crisis. We cannot do this alone – I am calling on housing associations and private sector developers to come together, just as we have at Yardley Brook, to build these homes and change the lives of thousands of families here in the West Midlands.”
Joe Reeves, Deputy Chief Executive at Midland Heart, said: “As one of the largest housing providers in the Midlands, we have a key role to play in addressing the shortage of homes and providing decent, affordable housing for local people across the region.
“We are aiming to deliver 2,250 new homes by 2030, which combined with the 4,000 we have already delivered during our last corporate plan period to 2025, will mean we will have delivered well over 6,000 new homes in a decade. Yardley Brook will be a huge part of this, and we look forward to working with our partner Morro, to transform this site, and develop and deliver almost 300 new homes.”
Meanwhile, the region’s Mayor, WMCA and the City Council are preparing to showcase more than £18 billion worth of investment opportunities at the UKREiiF (The UK’s Real Estate Investment and Infrastructure Forum) property show in Leeds, where key projects to be presented to investors and developers in Birmingham include:
- The Sports Quarter regeneration scheme in East Birmingham
- Smithfield Birmingham – a £1.9bn regeneration of 17 hectares in the heart of the city
- The Birmingham Knowledge Quarter innovation cluster.
by Kim Pidgeon | Apr 30, 2025 | News
When complete the Friary Park development will comprise of 1,345 homes
Planning permission has been granted for the third and final phase of transformation at the Friary Park estate in Acton.
The development is a joint venture by housing association Peabody and developer Mount Anvil.
The completed first phase of the regeneration saw 135 affordable homes built, of which 85 homes were provided to residents already living on the estate, while 50 were allocated to people from Ealing council’s housing waiting list.
The construction of the second phase is already underway.
Designed by housing architects HTA Design, the updated plans for the third phase of the scheme will comprise 693 homes, equivalent to 32% of Ealing’s annual housing target.
The plans take the total number of homes across the wider development to 1,345, of which 470 are affordable.
As a result of the transformation of Friary Park, 325 full time jobs will be created.
Peabody and Mount Anvil undertook extensive community engagement throughout the process, including more than 400 community events totalling 700+ hours, with existing residents, all of whom were given the option of moving into a new home on the estate.
The final plans also include a new 450 square metre Community Centre, co-designed with existing users, as well as an increased amount of public open space, a community square, play area and a new community kitchen and allotments for gardening.
“I’m delighted that Ealing Council has approved the third and final planning application to deliver more affordable homes in our new Friary Park community”, said Sofia Fernandes, member of the Friary Park Residents’ Steering Group.
“This regeneration is a chance to improve the lives of all residents, and to give them a better future.
“It hasn’t been easy. Change can be hard. There has been opposition from people who don’t live here, saying these homes aren’t needed. I’m grateful to Peabody and Mount Anvil as they’ve taken the time to understand us and to respond to our feedback- I’ve seen a real willingness to listen.
“As a Friary Park resident of 19 years, we’ve been waiting for this moment for a long time. Thank you to those who have made it happen.”
Phil Jenkins, Chief Investment Officer at Peabody, added: “Friary Park has already come a long way, and this decision from Ealing Council is another big step forward.
“With new social homes, a fantastic community centre, and big improvements to the estate, it’s clear the regeneration is having a positive impact – not just for existing residents but for the wider community too.
“The response from residents has been really encouraging. People are happy in their new homes and feel safe, supported and heard. We’re truly grateful for their trust and input, and we’re excited to get started on this final phase.”
The Friary Park estate is the latest in Peabody and Mount Anvil’s growing joint venture pipeline, which includes the transformation of the 266-home Watermeadow Court estate; the delivery of 307 new homes at One Clapham on the St John’s Hill estate; and 327 homes at their Three Waters scheme in Bromley-by-Bow.
by Kim Pidgeon | Apr 11, 2025 | News
Buckinghamshire housing association acquires 319 homes from Riverside
Red Kite Community Housing has completed the purchase of 319 homes from Riverside Housing Group.
The homes, based on estates in Windsor and Maidenhead, are made up of general needs houses and flats, plus an opportunity to develop some land in the future.
Trevor Morrow, Red Kite’s Group Chief Executive, said: “The homes have been the subject of a previous transfer from another housing association, so we want to ensure tenants feel confident they now have a long-term local landlord who wants to bring them into the heart of our community.
“The purchase of these homes offers us an excellent opportunity to grow by boosting the number of homes within Red Kite, thereby spreading our cost base.”
Red Kite Community Housing owns and manages more than 6,600 homes.
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Two Rivers Hosing secures over £4m in government funding for warmer homes
Two Rivers Housing will receive a £4.56m grant to help improve the energy efficiency of hundreds of their tenant’s homes in the Forest of Dean and across Gloucestershire.
The grant comes from the government’s Warm Homes: Social Housing Fund.
Two Rivers will use the grant over the next three years to partially fund upgrades to more than 750 of its homes, including energy saving fittings such as solar panels, loft insulation and improved ventilation systems to homes that have low energy ratings.
“This will make a huge difference for families in Gloucestershire and the Forest of Dean who have been affected by the cost-of-living crisis and are struggling to heat their homes’, said Jonny Jones, Executive Director of Homes at Two Rivers Housing.
“It will help us deliver on our promise to do everything we can to make sure that our homes are modern, warm, safe and affordable for our tenants to live in.”
The housing association has also received grants from previous waves of the Social Housing Fund (formerly called the Social Housing Decarbonisation Fund or SHDF) as well as the government’s ECO4 scheme.
That funding helped install air-source heat pumps in 225 of its tenants’ homes over the past two years.
The government’s Warm Homes: Social Housing Fund is allocated to local authorities and housing associations for work to improve the energy performance of homes currently rated below EPC Band C.
Two Rivers Housing manages more than 4,600 homes in the Forest of Dean, Gloucestershire and nearby Herefordshire.
by Kim Pidgeon | Mar 31, 2025 | News
New research looks into government house building targets and the skills and workforce needed to supply it
Only a quarter of construction students are entering the house-building workforce, according to a new report.
The publication from the Home Builders Federation (HBF) – ‘A Hard Hat to Fill’ – looks at the skills gap in the construction industry and the impact on meeting government housing targets.
The report looks at why the home building sector is – and has been – facing a significant skills shortage and the exacerbating factors:
- just 25% of those entering current construction related higher education courses are going onto a career in house building
- a shortfall in the number of recruits being attracted into the sector
- a severe loss of skills during the previous recession – 40% to 50% of skilled labour left the industry
- increases in demand – the industry has delivered an increase in supply over the past decade
- an ageing workforce – 25% of the homebuilding workforce is aged over 50 meaning the sector is facing an impending retirement cliff edge.
240,000 people will need to be recruited across a broad range of roles and skills to deliver on the Government’s housing targets, according to the report.
To meet those targets, home building needs to increase by 80,000 units a year, based on the most recent net additions figures. Research undertaken by the (HBF) has found that for every 10,000 new homes the industry builds, 30,000 new recruits are needed.
In addition, the transition to the Future Homes Standard will involve significant changes to the design and construction of new homes, which will require further training and skills.
The HBF says closing the skills gap requires a long-term plan for the future of apprenticeships, further education, and supporting the students and businesses which make up the workforce.
Work done in this area by the Government so far includes the replacement of the Apprenticeship Levy with the new Growth and Skills Levy, and the establishment of Skills England as a body to oversee the reforms and to identify and monitor gaps in the country’s workforce.
Apprenticeships
It’s estimated around half of the onsite workforce in the UK have undertaken an apprenticeship for the trade they were working in, making apprenticeships one of the most popular routes into a construction role.
However, in recent years, the ability for businesses to recruit and train apprentices has waned, the HBF says, due to reasons including:
- employer perception of the quality of apprenticeship courses is variable
- there are not enough apprenticeship positions available for everyone in further education courses to progress to one leaving students unable to advance into their chosen industry
- The Apprenticeship Levy has mostly been used for higher level qualifications but has seen a reduction in the number of apprentices at Levels 2 and 3, meaning it is not addressing the lack of newer entrants into the industry
- Apprentices pay during the first year of training is simply not an option for young people, particularly those who live in London or the South East.
Further Education
Around 100,000 students are enrolled in further education (FE) construction courses at any one time, but, according to the HBF, the courses are not producing work-ready potential recruits.
The report states that just 25% of FE learners gain employment in construction within six months of finishing their course with 60% leaving the industry completely shortly after finishing their training.
T Levels
T Levels were introduced in September 2020 as an alternative to A Levels (Level 3) for those seeking a technical qualification. Since 2021 there has been a T Level in onsite construction available, which focuses on practical skills in areas like bricklaying, carpentry and joinery, plastering, and painting and decorating.
In the 2022/23 and 2023/24 academic year, over 10,000 students undertook a T Level qualification. However, only 213 of these were in the onsite construction course – just 2% of the student base.
In conclusion the HBF report says the key changes the home building industry needs to see include:
- As the Growth and Skills Levy is being developed, the Government should consult with the home building industry to ensure that it will support developers to recruit the broad range of skills needed to increase housing delivery.
- Reform the apprenticeship training model which is out of step with employer needs
- Simplify the End-Point Assessment (EPA) process
- Ensure FE colleges are properly funded and resourced.
- Restructure and reform FE construction courses to put a greater emphasis on the development of practical skills.
