Prime Minister Andy Burnham has reaffirmed his commitment to a substantial council housebuilding programme, echoing a stance he first articulated in late 2024 as Mayor of Greater Manchester. In his first Labour conference speech as party leader and prime minister, Burnham promised "the biggest council housebuilding programme since the postwar era."
However, questions have been raised about the funding and scope of this commitment. Previously, Burnham had insisted that all £39 billion allocated to the Starmer government’s Social and Affordable Homes Programme (SAHP) until 2036 should be for social rent homes. He later announced that the initial £10 billion allocation would align with the existing 60% social homes target.
The first results from the SAHP are not expected to be seen until approximately 2029. Housing insiders suggest that, even under optimistic projections, the programme could deliver around 19,000 new social homes per year, amounting to just under 200,000 in total. This contrasts with the estimated need for at least 90,000 new social homes annually until 2036, according to housing charity Shelter.
Recent budget allocations have also drawn attention, with John Healey's budget providing an additional £1.5 billion for social and "affordable" housing. Councils currently hold £31.8 billion in debt from a 2012 agreement, which is reported to hinder new home construction and acquisition.