The Housing White Paper of February 2017 marked a sea change in housing policy, conceding that private housebuilding for sale would not deliver enough homes to meet need and improve affordability. A series of measures was proposed to diversify the housebuilding industry, such as encouraging housing associations to do more, and even urging local authorities to revisit their role as major developers.
Doing more with less
Affordable housing delivery has averaged more than 45,000 homes per year for more than two decades. Housing associations deliver a lot of these homes, but are well placed for an even bigger role. Restrictions on grant are a challenge, but associations have maintained delivery levels through the reduced funding period, switching from social rent to supply mostly affordable rent. Now, there will be most support for shared ownership, so we expect associations to respond to this.
Affordable delivery and grant peaked around the global financial crisis in 2008-09, supporting the wider housebuilding industry. Continuing to deliver affordable homes with less grant funding requires cross-subsidy from profit-making developments.