GUEST ARTICLE: Autumn Budget – Social Housing Comment

Louise Drew, partner and head of building communities at law firm, Shakespeare Martineau, writes the following guest article after Chancellor Rachel Reeves’ Autumn Budget…

“This Budget is a welcome breath of fresh air. With changes to Right to Buy, the introduction of a rent cap and a boost to the Affordable Homes Program, the new government has proven it is not pandering for votes but actively creating sound policies to fix a neglected, broken system.   

“It’s impossible to predict whether these changes will be enough to solve all the sector’s woes, but they are a positive start and focus on a long-term solution that is flexible to change, whilst still providing security, certainty and sustainability for the sector.  

“This government seems to finally understand that any housing strategy must be designed to last longer than the average six-month lifespan of the average housing minister under their predecessors. If this approach continues, the sector will thank them for it.”  

On Right to Buy reforms

“Right to Buy has been widely criticised this year, with many calling for its scrappage. Some may say the government is being cowardly by not taking this stance, however, Right to Buy provides many people with their only opportunity for home ownership. It’s right that an attempt should be made to fix it before getting rid of it completely.  

“Between its implementation and the end of March 2023, over two million homes were purchased through the scheme. However, the financial pressures faced by local authorities have meant a huge number of these haven’t been replaced with new stock, leading to a bigger deficit, longer waiting lists and overwhelmed councils.  

“It’s hoped that reducing the discount and allowing local authorities to retain the full receipt from any sales will allow councils to get a head start on creating a sustainable housing pipeline to replace stock at the rate it is being lost.”  

On the rental cap 

“The sector has been crying out for years for a rental cap, so this consultation clearly shows this government is listening to experts. Helping housing associations plan a long-term strategy and budget, rather than continuing to make them brace for the many reforms, tweaks and changes that currently happen on an annual basis will be invaluable to ensuring the sector functions effectively and funds are spent wisely.”