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England to add 70,000 affordable homes under £39bn plan

Ministers have revealed plans to build 70,000 new social and affordable homes throughout England over the next ten years, as part of stepped-up measures to tackle the longstanding housing crisis.

This initiative represents the kickoff of a sweeping £39 billion social housebuilding programme, aiming to achieve a total of 300,000 new homes in a decade. Upcoming projects are set for areas including Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England, Liverpool, and London, which will receive £6 billion in funding.

Major investment to address growing demand

With Monday’s announcement, the government confirmed that 60% of the first 70,000 homes will be designated for social rent — a tenure offered at around half the standard market rate and subject to strict eligibility rules. The government notes that London’s funding far exceeds that of other regions, though specific numbers of homes for the city have yet to be specified.

Recent statistics illustrate the urgent need for this proposal: as of earlier this month, 177,530 children in England were living in temporary accommodation, and by March 2025, a record 1.34 million households were waiting for social housing. Among those affected is Natasha, aged 22, and her five-week-old son, currently placed in a hotel in Milton Keynes after spending both her final pregnancy weeks and the start of her son’s life in temporary housing. She has voiced serious worries about the unsafe, cramped environment, describing issues like ant infestations and the challenge of sharing kitchen facilities with around 60 people.

Council building revival and challenges in delivery

Angela Rayner, Housing Secretary, expressed an intention to support local councils’ involvement in homebuilding, saying, “we are doing everything we can to get councils building once again.” Along with this, the government is channeling “millions extra” into supporting council-led construction and boosting their expertise. However, it remains unclear how the balance will be split between council projects and those built by housing associations. This focus marks a notable change from earlier decades; less than half of councils currently build or own homes, compared to the 1950s, when local authorities were responsible for more than 200,000 new homes each year.

Prime Minister Andy Burnham pressed the case for immediate action, stating, “No child should be raised in a hostel room and no family should wait 10 years for a front door of their own.” Burnham has previously stated his preference for the entire £39bn, 10-year budget to prioritise homes for social rent.

Despite these renewed efforts, the actual output of social homes remains well below what’s needed: in 2024-25, just over 12,000 social rent homes were finished—the largest number in ten years. Yet, groups including the National Housing Federation and charities maintain that at least 90,000 such homes need to be completed annually to address current demand.

Political debate and sector response

There has been a range of responses to the new plans. Shelter called the move a “significant improvement” but argued it still falls short of the scale needed to reduce homelessness and lengthy waiting lists. Policy manager Charlie Berry therefore urged the government to set firm, yearly targets for social rented home construction. In contrast, the Conservative Party has labelled the programme “unfunded,” and shadow housing secretary Sir James Cleverly criticised the projected timeline, pointing out that homes would not be available until 2039. He also noted that, “fewer homes will be delivered than previous programmes in this Parliament as social rent is more expensive.”

Eligibility rules for social housing remain a flashpoint. The Conservatives have vowed to make social housing available only to British nationals if they win the next general election, predicting this would “free up” 228,144 dwellings for domestic families. Reform has also suggested giving preference to British-born workers under 35. Shelter, however, points out that strict rules are already in place and contends that such policies do not address the root problem: a lack of available homes.

Targets and outlook

The government’s overall ambition is to deliver 1.5 million new homes by 2029, yet this target appears in doubt. Data from Energy Performance Certificate (EPC) records shows that around 203,000 new homes were completed in the 12 months leading up to June 2026. To achieve the 2029 target, annual completions need to reach at least 300,000 homes—well above current levels.

This funding and housing commitment is being recognised as an important early step, but both government officials and industry experts agree that addressing the ongoing crisis in England will require much more robust, sustained intervention.