Budget 2025: Housing Association CEO Warns of Absence of housebuilding Measures
Although the Chancellor’s 2025 Budget delivered relief by scrapping the two-child benefit cap and increasing personal allowance, Lee Bloomfield, CEO of Bradford’s Manningham Housing Association, expressed concern that housebuilding was completely overlooked—despite sustained cost pressures on low-income families. He welcomed funding for the West Yorkshire Mayor, but warned that without a strong housing agenda, the government risks losing momentum on its 1.5 million-homes pledge.
Similarly, the National Housing Federation urged the reintroduction of rent convergence to unlock funding through the Social & Affordable Homes Programme, criticising the Budget’s lack of support for supported-housing schemes.
Implications for Housebuilders & Developers
- Delivery Momentum Disrupted Without targeted measures, developers may struggle to progress schemes amidst rising costs and weak demand—especially as planning delays and profitability pressures remain unresolved.
- Pipeline Risk & Cost Squeeze Sky News labels it the sector’s “jaws of death”: increased build costs (+13%) paired with minimal house-price growth (+3%) are eroding margins.
- Affordable Build Gap Widens Housing associations report higher demand but need rent convergence policies and stable funding to deliver more affordable and supported homes.
Estate Agent & Market Outlook
- Supply Shortfall Continues A lack of new incentives for housebuilding likely means limited new-build stock, keeping resale prices firm, especially in worst-affected regions such as North and West Yorkshire.
- Regional Opportunity Bloomfield urges local partnerships in Bradford and Keighley to leverage regional funding in lieu of national support, agents should monitor West Yorkshire investment.
Strategic Actions for the Industry
- For Housebuilders & Developers: Campaign for planning reform, support schemes, or higher grant rates via Homes England. Without these, delivery pipelines risk stagnation.
- For Housing Associations: Advocate for rent convergence and long-term funding (10-year framework) to de-risk project delivery.
- For Estate Agents: Focus on local initiatives (e.g., Bradford’s City of Culture 2025) offering small pipelines of affordable homes, and be ready to market early releases.
The absence of direct housebuilding measures in the Budget leaves the sector in limbo, amid rising construction costs, modest buyer demand, and an uncertain planning environment. While welfare reforms provide some relief, reversing the stagnation on affordable housing depends on institutional support, market incentives, and quicker regulatory action. Until they arrive, stakeholders must rely on local deals and strategic partnerships to maintain momentum towards delivery targets.
Government’s “Default Yes” Policy: What It Means for Housebuilders, Developers and Estate Agent
The UK government has unveiled a landmark planning reform aimed at accelerating housing delivery near transport hubs. Under the new “default yes” rule, developments within a 15-minute walk of well-connected train or tram stations will receive automatic planning approval if they meet basic standards. This move is designed to unlock brownfield land, boost housing supply, and create vibrant, connected communities.
For housebuilders and property developers, the implications are significant. Planning certainty and faster approvals mean reduced risk and shorter timelines, especially for large schemes of 150 homes or more, where ministers can now intervene if councils refuse. Sites near stations, including some Green Belt areas, are expected to see a surge in demand and rising land values, making early identification of these opportunities critical.
However, speed comes with responsibility. Developers will need to ensure schemes align with emerging design requirements around density, affordability, and infrastructure provision. Green space, transport integration, and sustainability will remain central to planning compliance. Estate agents, meanwhile, can anticipate a wave of new-build stock in commuter-friendly locations, creating strong appeal for buyers and investors seeking convenience and connectivity.
This policy forms part of the government’s ambition to deliver 1.5 million homes and revitalise urban growth. For the industry, it represents a rare chance to combine planning certainty with strategic development—provided stakeholders act quickly and adapt to evolving standards.
New Homes Delivery in England Declines for Third Year, What This Means for the Market
Despite ambitious targets and recent planning reforms, new-build activity in England has fallen by 6% year-on-year, bringing completions down to approximately 208,600 in 2024/25, the lowest level since 2015/16. Quarterly government data confirm this slowdown: starts are recovering (+17% Q3 2024) but completions remain weak, around 36,580 in that quarter, down 7% from the previous year.
What’s Driving the Decline?
- Help-to-Buy withdrawal: Its removal in March 2023 stripped out up to 55,700 sales in 2020/21, and completions have since forcefully dropped 6.5% in 2023/24 and an estimated 180,700 in 2024/25.
- Falling planning consents: Fewer approvals in recent years are now impacting the pipeline, completions could drop to around 160,000 in 2025/26.
- Subdued demand & affordability issues: Mortgage constraints, high costs, and weak “buy-to-move” markets mean builders are reluctant to develop.
- Structural bottlenecks: Labour and supply chain limits constrain sector expansion, Savills suggests the absolute capacity is only around 1.2 million over five years, well short of target.
Regional Breakdown & Affordable Housing
- Regional disparities: London saw a 72% drop in starts year-year; West Midlands completions fell 22%.
- Affordable housing stabilising: Despite overall falls, affordable social housing starts rose 148% (to 2,002), and completions increased 63% between April–Sept 2024. Outlook: Planning Reform vs Market Realities
- Reforms aren’t yet working: While policies around stations and call-ins might unlock future supply, current completions are still falling.
- Delivery gap widening: BCIS projects just 1 million homes over this Parliament, far below the 1.5 million promise.
- Demand remains key: Analysts argue supply incentives must be complemented by mortgage support or builder grants for Buy-to-Let.
Implications for Housebuilders & Agents
- Pipeline caution: Housebuilders should expect long lead times as consents work through planning reform impact is delayed.
- Need for demand-side support: Without new finance schemes or price stimuli, market confidence may remain low.
- Focus on affordable and Build-to-Rent: These sectors are currently the bright spots. Delivering more supported homes could offset declining private sector volumes.
- Regional strategy critical: Areas like the West Midlands and London face steeper falls, suggesting a need for targeted interventions.
The 6% year-on-year drop underscores that England is entering a critical period where supply falls sharply below policy commitments. To reverse the trend and approach the 1.5 million homes target, sector leaders must combine land supply and planning reform with demand-side support, particularly through incentives, finance, and affordable housing programmes. Supply-chain expansion and workforce development are also essential to translate consents into actual delivery.
