UK (Parliament Politics Magazine) – Chancellor Rachel Reeves promised £2bn for 18,000 affordable homes, yet questions remain as she faces pressure over potential spending cuts.
To address the housing shortage, the government has revealed plans to build thousands of houses across England. Officials say this investment will provide stable and affordable housing for families and individuals.
Rachel Reeve’s views about fixing the housing crisis
During a visit to an affordable housing site in Stoke-on-Trent, the Chancellor revealed the proposal, joined by Deputy Prime Minister Angela Rayner.
Chancellor Rachel Reeves has announced £2 billion in grant funding to back the construction of up to 18,000 new homes across England. She stated that the investment will play an essential role in making housing more accessible for those in need.
Ms Reeves stated,
“We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation.”
She said,
“Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.”
Officials have described the funding as an “initial down payment from the Treasury,” marking the first major step toward a larger commitment to tackling housing needs. A more detailed long-term investment is expected to be revealed in the coming months.
How will the government’s housing plan address the homelessness crisis?
The government expects at least 50% of the planned 18,000 homes will be designated as social housing. However, charities are calling for a greater allocation, stressing that most of the homes should be reserved for social rent, citing record levels of homelessness across the country.
A day before the spring statement, the government has confirmed plans to reduce further spending cuts. Recent welfare reductions have already drawn criticism from Labour backbenchers. There are also reports that the digital services tax on big tech firms may be reduced to avoid potential U.S. tariffs.
What did the New Economics Foundation say about social housing targets?
Experts from the New Economics Foundation stated that 90,000 social homes must be built by 2027/2028 to meet the government’s housing target.
They also warned that ministers must go beyond this figure and deliver 110,000 new social homes. This is necessary to ensure a total of 1.5 million homes are built, with 365,000 being social rent homes over the next five years.
What did Angela Rayner say about tackling the housing crisis?
The Deputy Prime Minister and Housing Secretary, Angela Rayner said,
“Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.”
She stated,
“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder.”
Ms Rayner said,
“This is just the latest step forward in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”
Why did the government warn about social housing waiting list figures?
Local authority waiting lists for social housing in England stood at 1,330,611 in 2024, the highest number recorded in the past decade. The government highlighted that the figures for those on waiting lists are likely to “overstate the number of households who still require social housing at any one time.”
The government stated that households may be listed on more than one council’s register, and these lists are reviewed at different times to remove individuals who no longer require housing.
By the end of September, 164,040 children were living in temporary accommodation, a 15% rise from the previous year, the highest number since 2004.
What did Matt Downie say about the government’s housing announcement?
Matt Downie, CEO of housing and homelessness charity Crisis, stated Tuesday’s plan is “hugely welcome” and hopefully
“signals the beginning of a social housebuilding programme that will radically shift this country’s response to homelessness, putting housing at the heart of the solution”.
He called on the Government to
“ensure that the vast majority of the initial 18,000 homes are for social rent so that people facing homelessness can access them”.
What did Kevin Hollinrake say about the government’s housing plans?
Conservative shadow housing secretary Kevin Hollinrake stated,
“no way for the government to stop every single home built with this funding from simply coping with the population growth from illegal migrants, many of who might not even have left Calais yet”.
He added,
“Only the Conservatives under new leadership will take action to stop illegal crossings and prevent millions from gaining access to social housing.”
What did Sir Keir Starmer say about the spring statement and public spending?
Ahead of the spring statement, the Prime Minister stated his target was to “take some money out of Government” and he was exploring all options “across the board” to make necessary spending cuts.
Labour leader argued that the government had made ‘record investments’ during last October’s budget. He pointed out that the statement would not change the fundamentals of public spending.