New Budget 2024 and housing

The Autumn Budget 2024 includes several measures aimed at supporting social housing and addressing housing needs:

  1. Funding for social and affordable housing: The budget allocates £500 million to the Affordable Homes Programme, which supports building and maintaining affordable housing across England. This funding is expected to help deliver new affordable homes, though details on specific targets or additional initiatives are not yet provided.
  2. Stamp Duty Land Tax (SDLT) exemptions for social housing: Registered social housing providers will now be exempt from paying SDLT on properties acquired with public subsidy. This change aims to reduce acquisition costs, potentially freeing up funds for more affordable housing projects.
  3. Community-led housing funding: A £20 million fund will be directed toward community-led housing schemes, helping local communities to develop affordable homes that meet specific regional needs. Community-led projects like these, through Community Land Trusts, may offer sustainable and tailored housing options for various communities.
  4. Household Support Fund extension: The Household Support Fund has been extended for another six months, providing councils with resources to assist vulnerable households with essentials like food and energy bills. This fund can indirectly support social housing residents facing economic challenges by offering help to cover critical living expenses.
  5. Increasing Right to Buy receipts cap: The Government will raise the cap on Right to Buy receipts from 40% to 50%, giving councils greater flexibility to fund replacement housing. This measure could accelerate the replacement of housing stock sold under Right to Buy, enhancing availability in the social housing sector.

Overall, whilst these measures provide targeted relief, some housing organisations have expressed disappointment, suggesting the funding falls short of the comprehensive investment needed to address the growing demand for social and affordable housing fully.

Whilst those measures are welcome, the Budget included only limited new measures directly aimed at improving the condition of existing housing. Notably, the Social Housing Decarbonisation Fund, which previously allocated around £2.2 billion of a promised £3.8 billion to help upgrade social housing for energy efficiency, was not explicitly extended, leaving some uncertainty for future funding. Various industry bodies, including the National Housing Federation (NHF), have advocated for a full release of this funding, as well as for extending the zero-rate VAT on energy-saving installations (like double-glazed windows and doors) to continue through 2030 to support decarbonisation efforts in social housing​

Moreover, calls from housing advocates to expand social housing funding and improve existing stock by updating the Decent Homes Standard did not lead to specific new allocations or standards updates in this Budget. Although the Budget included some investment in new housing in specific locations and smaller community-led housing initiatives, many industry experts expressed disappointment at the lack of targeted funding to address the UK’s pressing needs in maintaining and improving existing social and affordable housing​

In terms of improving housing conditions, there was also limited support to mitigate issues like fuel poverty; while past budgets have seen some measures here, current requests to introduce a long-term social tariff in the energy sector and make further energy bill support available were not fulfilled.

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