Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 3
3
Accepted
Publish Long-term Housing Strategy for improving social homes and regenerating existing stock.
Recommendation
The Long-term Housing Strategy must put in place a long-term approach for improving and maintaining social homes and addressing the systemic drivers of poor housing quality, especially a long-term approach to the regeneration of existing social homes. We reiterate our call for the Government to publish this strategy as soon as possible. (Recommendation, Paragraph 25) 45 Raising the standard of social homes
Government Response Summary
The government published a five-step plan including a new 10-year £39 billion Social and Affordable Homes Programme, £2.5 billion in low-interest loans, and an extension of the 'preferential' borrowing rate.
Government Response
Accepted
HM Government
Accepted
14. In July 2025, the government published a five-step plan to kickstart adecade of social and affordable housing renewal. This includes a new 10-year £39 billion Social and Affordable Homes Programme – the biggest boost to grant funding for new social and affordable housing in a generation – as well as £2.5 billion in low-interest loans for Private Registered Providers and the extension of the ‘preferential’ borrowing rate for council housebuilding from the Public Works Loan Board until March 2027. 15. The plan also sets out measures to rebuild social housing providers’ financial capacity to borrow and invest in new and existing homes, including setting a long-term rent policy for social housing to support that investment. Over £1 billion of building safety funding will be available between 2026/27 and 2029/30 to accelerate remediation of social housing, and the Warm Homes: Social Housing Fund has allocated £1.29 billion over 2025–28 to support social landlords make energy efficiency improvements to their homes. 16. At the 2025 Spending Review, the government announced that there would be a 10-year social housing rent settlement from 1 April 2026 permitting rent increases of up to CPI+1% each year. Following our consultation over the summer, we can now confirm that providers will be able to increase weekly rents for their Social Rent properties that are below formula by up to an additional £1 each year over and above CPI+1% from 1 April 2027, and by up to an additional £2 each year over and above CPI+1% from 1 April 2028, until formula rent is reached. 17. In addition, the Warm Homes Plan is the biggest investment in home upgrades ever, with £15 billion of investment to cut energy bills, bring households out of fuel poverty, increase our energy security and make our homes warmer and more efficient. £5 billion of this support is targeted at low-income households.