The Government’s £39 billion social and affordable housing fund risks falling short of its ambitions unless ministers can overcome planning, infrastructure and construction constraints, advisers have warned.
Blick Rothenberg said the Government’s allocation of almost £10 billion to organisations designated as delivery partners was welcome, but cautioned that handing out grants was only the first step towards delivering new homes.
Mark Cunningham, a partner at the firm, said: “The Government has allocated almost £10bn of its £39bn fund to organisations it has identified as delivery partners, who have already demonstrated development capability and substantial pipelines. But grants alone don’t build houses.”
The Government aims to support the delivery of 70,000 social and affordable homes over the next decade, placing significant pressure on housing associations, developers and the wider construction industry to convert funding into completed properties.
Cunningham said the central test would be whether the schemes could overcome the practical barriers that have repeatedly held back housebuilding.
“The main question is if planning, infrastructure, construction capacity and development viability allows these schemes to progress efficiently and result in the 70,000 social and affordable homes being completed over the 10-year period,” he said.
The warning highlights the gap between announcing funding and physically delivering homes, with projects still dependent on planning approvals, viable development economics, available labour and materials, infrastructure and access to private finance.
“Successful delivery will rely on housing associations, developers, investors, lenders and contractors working together to bring schemes forward at the required pace and scale,” Cunningham said.
The relatively limited amount being allocated directly to councils also suggests ministers are relying heavily on established delivery organisations.
Cunningham noted that just £392.2 million — roughly 4 per cent of the funding — is being allocated directly to councils.
“The relatively small proportion allocated directly to councils (392.2m – roughly 4%) suggests the Government has prioritised organisations with established delivery structures who, it is expected, can realistically convert the funds into completed homes,” he said.
The strategy reflects an attempt to avoid some of the capacity constraints that have historically slowed public-sector housebuilding, but it also leaves the Government dependent on the ability of its chosen partners to deliver at scale.
For ministers facing a housing shortage and an ambitious decade-long construction programme, the political calculation is therefore straightforward: the money has been announced, but the homes still have to be built.
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