By Ahmed Abdelsalam
Prime Minister Andy Burnham’s promise to oversee the “biggest council housebuilding drive since the postwar period” is at risk unless the government provides an additional £7 billion in funding, according to a report from the New Economics Foundation (NEF) seen by The Independent.
Report Warns of Funding Gap
The NEF analysis says current plans will deliver an average of 18,000 social homes a year over the next decade, far below the 90,000 annually that housing experts including Crisis, Shelter and the NEF say England needs to meet demand. During the 1970s peak, local authorities built around 103,000 homes a year, but in the five years to 2025 they managed only 2,000 annually.
Extra £7bn Could Unlock 100,000 Homes by 2030
The NEF report states that with an extra £7 billion delivered early in the programme, the Social and Affordable Homes Programme (SAHP) could fund over 100,000 new council and social homes by 2030, putting England on track to build 90,000 homes a year by 2032‑33.
Charities Call for More Investment
Molly Harris, senior researcher at NEF, said the Budget’s £1.5 billion boost and the broader £40 billion ten‑year programme must be backed with “hard cash” at the next spending review. Shelter’s acting chief executive Mairi MacRae warned the funding increase “falls short” of what is needed, while Crisis’s Jasmine Basran said the government must “shift gears” to build at pace and scale.
Conservatives Criticize Lack of Plan
The Conservative Party said the report shows Burnham and Housing Minister Angela Rayner are “once again making promises without any real plan for delivery.” Shadow housing secretary Katie Lam argued the plan would require billions more, likely leading to tax rises or borrowing.
OBR Highlights Need for More Building
The Office for Budget Responsibility said returning to 1980s‑level council housebuilding would require at least 22,000 extra homes a year, costing £3‑4 billion annually. Meanwhile, Chancellor John Healey announced over £1 billion for social and affordable housing and greater powers for mayors to boost construction, including preferential borrowing rates for councils.
Experts Stress Need for Reform and Funding
Centre for Cities analyst Maurice Lange said meeting the prime minister’s ambition will demand both higher spending and regulatory reforms, noting that building only 18,000 homes a year is insufficient for households facing dire housing conditions.
