Spring Statement 2025: Key housing announcements
Government announce £2 billion investment in social and affordable housebuilding
Chancellor Rachel Reeves delivered her Spring Statement on March 25th 2025, which included a number of updates for the UK’s housing sector. Here’s what you need to know about these announcements, and how they could impact first time buyers looking for affordable housing.
Boost to affordable housing
The Affordable Homes Programme (AHP) received a new £2 billion funding package to deliver up to 18,000 new social and affordable homes. This investment is part of Labour’s broader target to build 1.5 million homes by 2029/2030. Reeves highlighted the importance of this initiative, stating that it represents “the biggest positive growth impact that the Office of Budget Responsibility have ever reflected in their forecast.” She added that the reforms put the government “within touching distance” of its ambitious housebuilding target.
The new funding will prioritise projects that are ready and waiting for immediate development, “getting spades in the ground quickly to build homes” in areas like Manchester and Liverpool.
Jade Turnstill, Head of Brand and Content at Share to Buy, comments: “It’s clear that demand from first time buyers is huge – there are 10 times more people looking for affordable homeownership properties on Share to Buy than there are available homes. Therefore, the Chancellor’s announcement of £2 billion investment in grant funding for investment in social and affordable housing, alongside continued commitment to planning reforms to support increased delivery of homes referenced in the Spring Statement, is highly welcome.
“However, there are increasing challenges ahead for registered providers in the delivery of these homes. This grant funding may go some way to support them – but the question is, will this meet the huge demand?”
Support for the construction workforce
To address the skills shortage in the construction sector, the Government also announced a £600 million package to train up to 60,000 new workers. This initiative aims to equip the industry with the expertise needed to meet ambitious housing targets, including the construction of 1.5 million homes by 2030.
Community-led housing initiatives
An additional £20 million has been allocated to support community groups, such as community land trusts and housing co-operatives, in building affordable homes. This funding will empower local organisations to address housing needs in their areas, fostering innovative and sustainable solutions. This will enable community groups to access land and receive planning permission where speculative developments cannot.
Looking ahead
While the Spring Statement provides a welcome boost to affordable housing, the sector eagerly awaits further details in the upcoming Spending Review this June. Long-term funding commitments and policy clarity will be crucial to ensuring the success of these initiatives.
Jade says: “At the first time buyer end of the market, we were keen to see a greater commitment to homeownership schemes from the Chancellor. Support for first time buyers fuels the rest of the property market, and failing to act now could have an impact on the market for generations to come.”
For more information on the Government’s investment to support social and affordable housing, visit the GOV.UK website.
