The package includes funding for councils and providers, as well as financial flexibilities and updated standards
The package is intended to bring affordable and social housing to thousands more families by combining funding with cost cuts.
This package precedes a £39bn bidding window next month to deliver 300,000 new social and affordable homes in the programme.
The money will be given to councils, housing associations, and providers
Housing Secretary Steve Reed has announced the new measures today as a means to ramp up housebuilding after a sluggish 2025. If successful, the measures will bring a record number of families into housing from temporary accommodation or waiting lists.
The new standards will also ensure damp is less of an issue and that homes are warm and energy efficient through the implementation of the Decent Homes Standard. This brings about the first update to decency standards in 20 years, and will be checked along with new Minimum Energy Efficiency Standards for tenants.
The intent of this is to save tenants money on their energy bills.
Next month, bidding will open for the Social and Affordable Homes Programme, worth £39bn. This will provide councils with the power to build potentially thousands of new affordable and social homes.
Housing secretary Steve Reed said: “Every new social home means one less family stuck on a housing waiting list. Building more social housing is crucial to fixing the housing crisis for good.
“But that’s only part of the story. We’re also driving up the quality of social housing so they’re well insulated and damp-free to keep families safe and cut their energy bills in the years ahead.
“I’m calling on everyone who has a part to play to build, baby, build.”
“Crucial to improving quality of life”
The CIH has commented on the introduction of the measures, with Gavin Smart, chief executive at the Chartered Institute of Housing, saying: “CIH welcomes today’s announcement of new funding and regulatory certainty for social and affordable housing, building on the 2025 Spending Review and supporting the delivery of more high-quality, affordable homes.
“We particularly welcome the new Decent Homes Standard, updating minimum standards for the first time in 20 years and strengthening action on damp, mould and energy efficiency – crucial to improving quality of life and reducing living costs for tenants.
“Measures to accelerate council housebuilding, increase financial flexibilities and reform the Section 106 market, alongside social rent convergence, should strengthen the sector’s capacity to invest in both new and existing homes.
“We recognise that delivery at scale will require strong leadership, careful planning, and collaboration across the sector. CIH will continue to support members to navigate these changes and deliver the government’s ambition for safe, decent and affordable homes for all.”
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