£39 Billion Boost: The Largest Affordable Housing Investment in 50 Years

The UK government has unveiled a £39 billion investment package for housing – hailed by industry and third-sector leaders as the “biggest cash injection in affordable housing in half a century”, according to The Wiltshire Gazette & Herald.

This multi-pronged strategy aims to tackle the housing crisis by addressing long-term supply, unlocking brownfield land, reforming planning, and providing critical financial support to housing associations and delivery partners.

Key Announcements

As reported by BE News, the package includes:

• £6 billion in capital funding: To build or improve over 100,000 homes.
• £3 billion in government-backed guarantees: To support long-term private financing of affordable housing.
• A £30 billion long-term housing plan: To regenerate town centres, modernise planning systems, and deliver large-scale housing on brownfield land.
• Accelerated planning zones: To reduce approval timelines and unlock sites faster.

What’s Been Allocated to Housing Associations?

This new funding builds on existing and future commitments directly benefiting housing associations:

• Homes England’s Affordable Homes Programme (2021–2026): £8.03 billion is already being invested to deliver at least 100,000 homes outside London. Across England, the total is £11.5 billion, targeting up to 180,000 affordable homes, including £2 billion in social rent top-ups confirmed for 2025–26 (Financial Times).
• 2026–2032 Housing Association Commitments: Of the £39 billion recently announced, around £9 billion is earmarked for 2026–2029, with investment expected to ramp up to £4.5 billion annually by 2035–36 (Financial Times).
• A 10-year CPI +1% rent settlement from 2026 has also been confirmed, providing greater revenue certainty for housing providers (Financial Times).
• Additional support includes: £2.5 billion in low-interest loans £1 billion for repairs and remediation (2026–2030) £4.8 billion in financial transaction capacity via Homes England £950 million to expand the Local Authority Housing Fund.

Industry Reaction

The announcement has received widespread support:

“This is the biggest cash injection in affordable housing in half a century.” – Polly Neate, Chief Executive, Shelter via The Wiltshire Gazette & Herald

“It has the potential to reverse decades of under-delivery.” – Brian Berry, Chief Executive, Federation of Master Builders via BE News

Shelter described the funding as a “generational opportunity”, while others highlighted its long-term structure and planning reforms as essential to unlocking delivery at scale.

Why This Matters

• Over 1.2 million households remain on social housing waiting lists in England.
• Private rents have risen by 9%+ year-on-year ([ONS]).
• Historic underinvestment has meant just 60,000 affordable homes were delivered annually – far short of need.

This new funding – and its strategic deployment – marks a turning point for the sector, with a focus on quality, sustainability, and long-term delivery capacity.

Alderley Group’s Perspective

As a developer committed to delivering high-quality affordable, extra care, and sustainable housing across the North and Midlands, we welcome this announcement and its potential to accelerate delivery.

With active developments in Warrington, Walkden, and Rishton, and partnerships with leading housing associations such as Housing 21, Onward Homes and Torus, our pipeline is well aligned with the government’s renewed ambitions.

What opportunities – or challenges – do you think this funding unlocks for the sector?