Autumn Budget 2026: Affordable and social housing gets £1.5bn cash injection
Affordable and social housing provision has been given a £1.5bn boost by the Chancellor as he laid out plans to deliver around 10,000 homes in England during the Budget.
Chancellor of the Exchequer John Healey said “having a place to call home is foundational” and added that the government would prioritise housing investment in all its forms.
The funding will be prioritised for social rent, particularly council homes, which takes the total investment in the Social and Affordable Homes Programme to more than £40bn over 10 years. It will be allocated between 2027/28 and 2030/31 and will increase over that period.
VAT relief will be provided on land sold to registered social housing providers, while a one-year extension to the preferential rate from the Public Works Loan Board will be given to local authorities, which will keep loans at 40 basis points below the normal rates.
Housebuilders welcomed the announcement but said funding alone will not be enough to overcome the challenges to delivering housing.
Chris Harris, chief operating officer of Dandara, said: “With further details of the government’s wider housing reforms expected through its 10-year plan, there is still an important opportunity to provide greater certainty around planning, infrastructure and the costs of bringing new homes forward.
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“If the current government is serious about delivering 1.5 million homes this Parliament, then we need an environment that supports both demand and delivery. That means enabling housebuilders, housing associations and local authorities to build at scale across private sale, private rent, affordable housing and social rent, ensuring that housing delivery reflects the needs of communities.”
Elsewhere in the Budget, the government revealed further details about the Your First Home scheme, open for pre-registration in December. The first loans will be issued in April 2027.
