Labour Government Launches £10 billion Council-Housing Programme

The government has earmarked £10 billion for councils and housing associations to deliver more than 70,000 homes across England, with at least 60 % required to be social housing. Of this sum, £529 million is slated for Greater Manchester, £409 million for the West Midlands, £445 million for the North East, £441 million for West Yorkshire, £380 million for the Liverpool City Region, and £249 million for South Yorkshire. An additional £6 billion will be provided to the Mayor of London, Sir Sadiq Khan. The remaining funds will be distributed to 33 “strategic partners” that the government will announce later.

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The programme follows a ten-year Social and Affordable Homes Programme (SAHP) agreed under Prime Minister Sir Keir Starmer. Unlike the previous emphasis on market-sale homes championed by former housing secretary Steve Reed, the current approach prioritises council and social rent construction, with mayoral authorities given powers to overrule councils that reject planning applications.

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The Housing Secretary indicated that some developments may occur on low-value sections of the green belt, reclassified as “grey belt.” Under “golden rules” for such sites, at least 50 % of units must be social housing and supportive infrastructure must be provided. Rayner noted that the government will work with strategic authorities to identify suitable locations and ensure mandatory local plans are in place, addressing what she described as a gap in the previous administration’s planning framework.

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Labour’s manifesto target of building 1.5 million homes by 2029 faces pressure as temporary-accommodation households have risen to 135,000, including 86,460 families with children. A total of 177,530 children were recorded as homeless at the end of March, costing local councils a record £2.8 billion annually. Rayner argued that the surge in temporary accommodation affects councils’ ability to deliver new homes, prompting the shift toward council-led construction. The Housing Secretary expressed hope that the early release of funding will boost confidence in the stalled housing market, though no completion dates for the new homes have been confirmed.

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