UK unveils £10bn housing package with 60% social renting target

The UK government has announced an initial £10 billion investment in subsidised housing across England, with a specific target that 60 per cent of the funding be directed towards social renting. This allocation is drawn from the 10-year Affordable Homes Programme and is designed to support the construction of 70,000 homes outside London. A further £6 billion is earmarked for London, though ministers indicated this portion will be allocated at a later date.

The announcement represents a notable adjustment in policy direction for Housing Secretary Andy Burnham, who previously advocated for the entire £39 billion programme to be dedicated to council homes. Burnham had argued that social homes are more heavily subsidised and that direct control by local authorities is essential for affordability. Under the new framework, the remaining funds will support other forms of accommodation, including shared ownership schemes and sheltered housing.

To deliver this investment, the government has identified 33 “strategic partners” who will be guaranteed funding for the next decade. In a structural change to the scheme, three of these partners will be local councils, a first for the programme. This move is intended to help the government meet its broader goal of constructing 300,000 affordable homes over the coming ten years, a target Burnham has described as the biggest council housebuilding programme since the postwar period.

Ministers stated that the mix of housing types reflects the current policy stance of the Starmer government, balancing social renting with other subsidised options. The inclusion of local councils as direct recipients of guaranteed funding aims to streamline delivery and ensure that housing development aligns with local strategic needs.

While the primary focus of the announcement is on housing infrastructure, the policy shift may draw scrutiny regarding the extent to which the original pledge for a fully social housing model has been maintained. The distinction between the previous call for 100 per cent social homes and the current 60 per cent target highlights the ongoing negotiation between different housing delivery mechanisms.

The government’s commitment to these 33 partners provides a level of financial certainty for the next decade, allowing for long-term planning in housing development. As the £6 billion for London remains to be detailed, the full scope of the national housing strategy will continue to evolve in the coming months.