Autumn Budget 2024: what are the key asks for housing?

National Housing Federation

 

The National Housing Federation (NHF) said it has made recommendations in its submission that, taken together, would “create the conditions” for housing associations to help deliver “the biggest increase in affordable housebuilding in a generation”. Associations could “play a critical role” in supporting public services to rebuild.

 

The trade group said its recommendations would enable its members to progress their shared priorities by investing in existing homes to make them safe, green and of a high quality.

 

The NHF has called for a 10-year rent settlement with annual increases capped at CPI plus one per cent and “a fair and consistent approach” to rent convergence for those homes below formula rent to rebuild housing associations’ capacity.

 

The group urged the government to implement a “rapid boost” to the AHP, extending the current programme by one year along with a funding boost, a shift towards social rent, and “greater flexibilities” around grant rates and regeneration.

 

The housing body recommended that the government sets up a new long-term AHP from 2026 for social rent and shared ownership, with minimum funding of £4.6bn per year on average for the first parliament, on a minimum five-year rolling basis.

 

The NHF also called for the government to provide equal access to the Building Safety Fund and the Cladding Safety Scheme to social landlords and to “quickly roll out” Wave 3 of the Social Housing Decarbonisation Fund with a funding boost in line with Labour’s Warm Homes Plan.

 

“Housing associations are anchor institutions in their communities, with a track record of collaborative delivery in every part of the country,” the NHF said in its submission.

 

“Housing associations already build a quarter of new homes and drive growth, improve the energy efficiency of 50,000 homes annually and aid a variety of public services through supported and older persons’ housing provision.

 

“For every £1 of public grant, housing associations unlock £4 of private investment. They also save residents £9bn every year compared to if they were living in the private rented sector and save the government £6bn annually through reduced welfare spending.”

 

Chartered Institute of Housing

 

The Chartered Institute of Housing (CIH) has called for the government to invest in social housing to ensure that new supply includes affordable and secure homes.

 

The body said that the government should make social housing “the largest component” of its investment in new housing, develop a long-term housing investment programme and curb the loss of homes through Right to Buy.

 

It also called for the implementation of a long-term rent settlement.

 

The CIH urged the government to develop a long-term housing investment programme for the sector. The current AHP should be boosted alongside the development of a new, “more ambitious” programme from 2026.

 

The group said there should be “a major shift” of subsidy from private market support as this would enable funding to be directed where it would meet the greatest housing need and could enable Homes England to support more affordable housing projects within the current AHP.

 

It referred to analysis for the UK Housing Review 2024, which found that of “some £42bn invested by the government in housing in the current four-year period, about half is spent on support for the private market, including about £4.2bn annually in grants and loans”. It contrasts this with Scotland and Wales, where more than 87 per cent of support goes towards affordable housing.

 

The CIH also urges government to invest in supported housing to “address rising levels of need and reduce pressures on public services”.

 

The group recommended that the government invests in homelessness prevention and support to “address the current crisis”, particularly in temporary accommodation.

 

The CIH also called for the government to reform social security provision to support those on the lowest incomes.

 

In addition, the group urged the government to support people with energy costs this winter and continue to drive decarbonisation and energy efficiency improvements in homes.

 

“We need a sustainable housing system that supports a vibrant economy, with urgent action to support those on the lowest incomes, decarbonise the residential sector and finance new social and truly affordable housing,” the CIH said.

Northern Housing Consortium

 

The Northern Housing Consortium (NHC), a not-for-profit membership organisation whose members own or manage 90 per cent of social rent homes in the North of England, also called for a new 10-year rent settlement of CPI plus one per cent for social landlords. This would enable them to “effectively plan their own investments in new and existing homes”, it said.

 

The group would like a two-year extension to grant funding for affordable housing development “to keep affordable housing providers building the homes we need”. This should be followed by the announcement of a new long-term AHP with the flexibility to work with Mayoral Combined Authorities to deliver on local priorities.

 

The body said that the government should introduce a long-term funding commitment for the decarbonisation of the North’s social housing stock, of £500m a year between 2025 and 2030, with a commitment to increase funding to a minimum of £1bn per year from 2030 to 2035.

 

In addition, the NHC called for a 10-year, £4.2bn programme of devolved brownfield funding to unlock the delivery of 320,000 new homes by remediating all identified brownfield land in the North of England.

 

It also highlighted the need for the government to consult on both funding and regulation, including a new Decent Homes Standard covering the social and private rented sectors, “to tackle challenges with the existing stock and the need to regenerate communities across the North”.

 

In addition, the NHC said that the government should permanently link Local Housing Allowance rates to the 30th percentile of local market rents to ensure private rented sector affordability and prevent homelessness.

 

Tracy Harrison, chief executive of the NHC, said: “Our budget representation has focused on how the government can target investment to enable our members to make a real difference to communities across the North. They’re ready and waiting to support the government to deliver new homes, warmer homes and to regenerate communities.”

 

Local Government Association

 

The Local Government Association (LGA) warned the government against any “disastrous” further cuts in the Autumn Budget after its analysis found that councils face a funding gap of £2.3bn in 2025-26.

 

The national membership body for councils in England said that, instead, the government must provide “adequate funding to sustain the vital services that… communities rely on every day”.

 

The LGA said it is “clear that there needs to be immediate action” to support the sector in the short term.

 

The government should give councils “a significant and sustained increase” in overall funding that reflects current and future demands for services and multi-year and timely finance settlements, it urged.

 

In addition, grant funding provided should be general rather than ringfenced, with a reduction in what it called the “fragmentation” of government funding, and an end to the use of competitive bidding for grant allocations. 

 

The LGA said that the government should strengthen Housing Revenue Accounts (HRAs) via a long-term rent settlement of at least 10 years and the restoration of lost revenue caused by past rent caps and cuts. These steps would give councils certainty on rental income and support long-term business planning, it said.

 

The LGA also called for reform to Right to Buy to support the replacement of existing social housing, to avoid continued net loss of stock.

 

This should include: allowing councils to retain 100 per cent of sales receipts; permanent flexibility to combine receipts with other government grants; and the ability to set the size of discounts locally. New build homes should also be exempt, the group said.

 

Louise Gittins, chair of the LGA, said: “Councils are the key to delivering the government’s priorities, but the risk of financial failure across local government is potentially becoming systemic. Councils already face a funding black hole of more than £2bn next year.

 

“Having already delivered £24.5bn in cuts and efficiencies, any further cuts on top of this would be disastrous. The government needs to take action to provide councils with financial stability and certainty in order to unlock their full potential. 
 
“Immediate financial support and long-term funding reform and certainty – alongside a focus on preventative spending – are essential to protect services and enable councils to fully contribute to the government’s agenda, from social care to housing, economic growth and tackling climate change.”

 

London Councils

 

London Councils also used its Budget submission to call for financial stability for local authorities. It said the government should increase core spending power – a measure of the resources available to local authorities to fund service delivery – by seven per cent in real terms in 2025-26. This would help to close the £700m funding gap for London boroughs that it is forecasting for the year.

 

The group said that the government should also implement three-year minimum local government finance settlements and publish them “as early as possible”.

 

On housing, London Councils said that the government should end all restrictions preventing boroughs from reinvesting 100 per cent of Right to Buy sales receipts in new homes, and inject additional AHP grant into London to grow the overall number of affordable homes.

 

The group said that the government should double the Homelessness Prevention Grant to stabilise the “growing financial crisis in temporary accommodation” and invest in a new ‘green and decent homes’ programme to reduce capital investment requirements on HRAs.

 

London Councils recommended that the government issues a revised HRA debt settlement to unlock “essential new financial capacity” and bring forward a new funding settlement for the social housing sector, including a form of rent catch-up in addition to the anticipated CPI plus one per cent 10-year rent policy.

 

London Councils said: “London boroughs are determined to work with the government to address the urgent challenges facing our city and country.

 

“Councils in the capital and across the UK have a pivotal role to play in contributing to a new mission-driven approach.

 

“However, objectively well-run councils are in dire financial positions. Without sufficient funding or powers to self-remedy, it is simply a matter of time before more councils can no longer meet their obligations and call on government’s time and resources to stay afloat.”