Spending Review 2025 – what’s next?

The spending review has brought lots of good news for the housing sector, and communities, in the North. Many of the issues we’ve campaigned on have been addressed. This video gives a roundup of some of the key issues we’ve raised and the outcome in the spending review.

This article covers:

Key announcements in the spending review and the NHC reaction

  • A ten-year £39bn Affordable Homes Programme, with social rent as the priority tenure.
  • A ten- year rent settlement of consumer price index plus one per cent, with a consultation on how to implement rent convergence to follow.
  • Continued commitment to the £13.2 billion Warm Homes Plan.
  • £1 billion of new funding between 2026/27 and 2029/30 to remediate social housing. Housing providers are to be given the same access to the Building Safety Fund and Cladding Safety Scheme to remediate properties as private owners.
  • Changes to the Green Book funding rules to support greater public investment outside of London and the South East, and a continuing commitment to devolution.
  • Local Authority Housing Fund – £950 million for new temporary accommodation

Northern Housing Consortium Chief Executive Tracy Harrison said:

“This announcement of a ten-year £39bn Affordable Homes Programme is a significant milestone for the social housing sector in the North – the combination of a long-term rent settlement and greater investment in affordable housing will help our members deliver for the communities they serve. We’ve consistently highlighted the importance of long-term funding over ten years to enable our members to ramp up delivery.

“We’re also pleased the Government recognises that ‘one size fits all’ solutions don’t work for the North. Its commitment to continuing devolution and changes to Green Book funding rules should make a real difference. Our research has consistently found that centralised funding models and narrow value-for-money criteria have been a barrier to delivering the solutions Northern communities need.

“We hope the new Affordable Homes Programme will offer continued flexibility to replace existing homes that don’t meet the needs of communities. However, that alone will not address the North’s regeneration crisis with over 126,000 social housing homes reaching the end of their life, and more than quarter of private rented homes in the North not meeting Decent Homes Standards. To make sure everyone has access to good quality home a dedicated funding stream to support housing-led neighbourhood regeneration is urgently needed.

“The Chancellor’s commitment to the £13.2bn Warm Homes Plan is good news for Northerners. We’ve consistently advocated for investment in energy efficiency because the North has some of the oldest coldest homes in the country and almost a million households in the North are living in fuel poverty. The Warm Homes Plan will play a critical part in addressing these issues.”

“We welcome the Government investing in up to 350 deprived communities across the UK. Our research has highlighted the importance of funding community infrastructure and improving place.”

You can read our Spending Review on-the-day briefing ​here.

In the weeks following the Spending Review the government has maintained momentum with some more significant announcements including:

The National Housing Bank

  • The bank will be a new subsidiary of Homes England
  • It will manage £16bn of investment made up of loans, equity and guarantees, looking to support the development of 500,000 new homes .
  • £2.5 billion of low interest loans for social and affordable housing providers.
  • The Bank will work with strategic authorities and local leaders to establish localised packages of support aligned with housing and regeneration priorities in those areas.

National Housing Delivery fund

  • £5 billion of new grant funding for infrastructure and land remediation.
  • Grant to complement investments made by the National Housing Bank and work alongside Mayoral Strategic Authorities, supporting their housing and regeneration goals.
  • Fund to be operational from 1st April 2026.
  • Further details on how mayors, local authorities, Ministry of Housing Communities and Local Government, HM Treasury and Homes England will work together on investments and delivery to come later this year.

NHC reaction:

The National Housing Bank is good news for the North. It should boost delivery of new homes, particularly on more complex sites, such as those on brownfield land. Our Brownfield First research has identified that there is capacity for 320,000 new homes on brownfield land in the North, so unlocking these homes is a priority.

There’s still further detail to be confirmed but we’re pleased the announcement included plans for Homes England to work with Mayors and local leaders to develop integrated funding packages which address local housing and regeneration priorities. We’ve consistently highlighted the importance of local solutions to meet local needs.

Ten-year National Infrastructure Strategy

Housing has been recognised as critical part of our national infrastructure. The Government strategy says:

“This is the first time that the UK has set out a long-term Strategy that brings together economic infrastructure (transport, energy, water and wastewater, waste, digital and flood risk management) with housing and social infrastructure (hospitals, schools and colleges, and prisons and courts).”

Many of the housing-related commitments in the strategy, such as the £39 billion Affordable Homes Programme, the National Housing Bank and the Warm Homes Plan have already been set out by government.

What’s next

The mood in government and across the sector is that there must now be a focus on delivery – this is something we’ll work with members to support.

There’s been lots of good news but we’re still waiting for further detail on some important points. A round up is below.

  • Long term plan for housing
    • This is to be published at some point this year and should provide further clarity on the Government’s housing ambitions.
  • Affordable Homes Programme prospectus
    • The increased scale of the programme is very welcome, but we are still awaiting further detail on targets, tenure split (although we know social rent will be a priority) and policy requirements.
    • The current fund offers flexibility so some funding can be used to support regeneration through funding replacement homes. If we want to address the housing crisis in the North, it is vital that this flexibility is maintained or increased.
    • Further detail is needed on how devolution and mayoral strategic oversight will work in practice.
  • National Housing Bank and Delivery Fund:
  • Confirmation of the investment strategy is expected soon. Details on how the Bank and Fund will work with mayors to align with local priorities are eagerly anticipated.
  • Funding for brownfield remediation:
  • With capacity for 320,000 homes on brownfield land in the North this is an important issue. The Government has indicated that brownfield development is a priority, but exact funding mechanisms are still to be confirmed. The National Housing Bank and Housing Delivery Fund will play an important role in enabling brownfield development, but we need to see exactly how local leaders will inform the Bank’s work, and how this funding will work alongside their integrated settlements and devolved funding streams.
  • Existing homes:
    • Consultations on the New Decent Homes Standard, Minimum Energy Efficiency Requirements and Rent Convergence are all expected soon. Outcomes of these consultations will impact minimum standards required for existing homes and in turn influence the financial position of housing providers and their ability to deliver.
  • Warm Homes Plan:
    • The funding levels have been guaranteed (£13.2 billion) but further details on the plan to are to be confirmed in the Autumn. We’re awaiting further details on future waves of Warm Homes: Social Housing Fund.
  • Regeneration:
    • Regeneration is a priority for the North and refences to regeneration have been pepper-potted in recent government announcements. However, we are still awaiting more detail on exactly how this will be supported. Will this be through flexibility in the affordable homes programme, integrated settlements, the National Housing Delivery fund, or a combination of all three?
    • In the spending review the Chancellor announced a Local Growth Fund and investment in 350 deprived communities, we still need detail on specific interventions, funding levels and which communities will be targeted.
  • Integrated Settlements:
    • The Government has said: “Final scope and quantum of these integrated settlements will be set out in due course.”
    • Retrofit is likely to be included in integrated settlements by the end of the parliament “subject to a strong track record of retrofit delivery and successful transition period.”
  • New Towns:
    • An announcement on potential locations is expected shortly.
  • Right to Buy
    • The outcome of the Right to Buy consultation is expected soon. The Government consulted on the qualifying criteria for tenants, property exemptions, discounts, replacement of homes sold under Right to Buy, rules governing Right to Buy receipts, and if there should be increased restrictions on properties after sale. Read the NHC’s response to the consultation.