The government’s recent £39bn pledge for social and affordable housing is the biggest we’ve seen in decades, and it couldn’t have come at a more crucial time. Right now, more than 1.3 million households in England are stuck on waiting lists for a social home. That’s a 10% jump in just two years. For all those families, this announcement is a much-needed sign that help could finally be on the way.
But as anyone in the sector knows, ambition is only half the battle. England needs 145,000 new affordable homes every year, including 90,000 for social rent. Yet in 2020/21, we managed just 52,000. The gap is huge. Closing it will take more than just money; it will take a genuinely joined-up approach – one that brings together government, local authorities, the construction industry, and the private sector in a way we haven’t seen before.
One of the most important questions is where these new homes will actually be built. It’s not just about putting up houses wherever there’s space. Rural areas, for example, often need more homes per 1,000 residents than cities, but social housing makes up just 9% of rural housing stock compared to 18% in urban areas. Encouragingly, we’re already seeing towns and cities like Blackpool, Preston, Sheffield, and Swindon bring forward new building plans, which is proof that momentum is building in the right places. But we can’t ignore the persistent North-South divide: London and the Southeast continue to power ahead economically, while regions in the North are still playing catch-up. If we want to truly move the needle, investment must be targeted to areas of greatest need, not just those where it’s easiest to build.
Delivery is another critical challenge. The construction industry is already stretched, with a high number of unfilled roles. The Construction Industry Training Board estimates we’ll need to recruit over 43,000 new workers every year until 2028 just to keep up. This is a sector-wide challenge that demands a coordinated response. One that invests in training, apprenticeships, and making construction an attractive career for the next generation.
Planning reform is equally vital. Outdated rules have held back an estimated 4.3 million homes since 1955, and over a million homes with planning permission since 2015 are still unbuilt. We need to streamline the planning process, empower local authorities, and ensure that the system supports, not stifles, ambitious delivery.
The private sector, especially the build-to-rent market, has a big role to play too. In the last five years, the number of build-to-rent homes has shot up by 173%, with over 123,000 completed units. Regional cities are now leading the way, showing that when public and private sectors work together, we can deliver the homes people need.
And as we build, we must build for the future. It’s encouraging to see that 86% of new build homes now achieve top energy performance ratings, compared to less than 5% of older homes. With the UK aiming for net-zero emissions by 2050, the housing sector has a real chance to lead the way on climate action and future-proof our communities.
There’s no single fix for the affordable housing crisis. It’s going to take bold ideas, real collaboration, and a relentless focus on delivery. But if we get it right, this could be the moment we reshape the housing market for the better – making a real difference for the people and communities who need it most.
James Evans, CEO, Douglas & Gordon