The Spending Review can unlock the sector’s potential – here’s how

This slowdown is not unique to us. Across the G15, which represents London’s largest housing associations, development has stalled, with some associations seeing drops of more than 70 per cent in new housing starts in just two years.

Meanwhile, demand continues to rise, with 323,800 households now waiting for social housing in London – an alarming reflection of the widening gap between supply and demand.  

The impact of this shortfall is clear. Cash-strapped local authorities across London are spending £4m a day on temporary accommodation – an unsustainable cost that underlines the urgent need for long-term housing solutions rather than expensive, short-term fixes.

The reality is that local authorities alone cannot deliver the social housing needed to tackle the crisis. A healthy housing market requires a balance of homes for people at all income levels.

Nowhere is this more clear than in London, where many people – especially the working Londoners who keep this city going – are reliant on affordable or social housing if they want to live anywhere inside Zone 4.

The Spending Review is the last opportunity to enable housing associations to contribute toward meeting the government’s ambitious 1.5 million homes target for this parliament.

Our most pressing priority is long-term financial certainty. A 10-year rent settlement at Consumer Price Index plus one per cent would provide the stability needed to unlock investment, allowing housing associations like mine to plan and build at scale.

Beyond this, there must be a firm commitment to a long-term successor to the Affordable Homes Programme.

Without sufficient funding, the supply of truly affordable housing will continue to shrink, leaving even more households struggling to find suitable accommodation.

Crucially, housing associations must also be given equal access to building safety funding. Ensuring that essential remediation work does not come at the expense of new development is critical to maintaining the delivery of more housing.

Additionally, investment in existing stock must be prioritised through a Warm and Decent Homes Fund, enabling housing associations to improve and retrofit homes without diverting resources away from new supply.

This Spending Review is about more than just housing numbers – it is about ensuring the right mix of housing is delivered to meet the country’s needs.

The government has an opportunity to restore confidence in the sector, put housing associations on a sustainable financial footing, and ensure we play our part in addressing the crisis by building. 

Without action, the housing crisis will only deepen. Even if 1.5 million homes are built, many of the underlying challenges will remain.

Housing associations like mine are ready, willing and able to deliver the affordable and social homes communities need – we just need the right support.

The upcoming Spending Review is a crucial opportunity to unlock our potential and ensure we can build the homes needed to help end the housing crisis.

Patrick Franco, chief executive, Notting Hill Genesis, and board member, G15