Rachel Reeves delivered the hotly anticipated 2024 Autumn Budget on 30th October – The speech not only outlined the economy’s health, but the government’s plans to reset the trajectory and lay out plans for housebuilding during the course of the parliament
Paul Johnson, director of the Institute for Fiscal Studies (IFS), commented that this budget, despite being among the largest tax-raising efforts, still leaves many public services feeling constrained, with the pressure on Reeves to spend effectively on truly impactful housing projects.
This sentiment was echoed by Shelter and the National Housing Federation, both of whom support the budget’s direction but stress the need for judicious fund allocation to ensure housing and social services don’t fall short of demand.
Key headlines:
1. Major Funding Initiatives
The government’s total housing investment for 2025 has now surpassed £5 billion, including a dedicated £3 billion in guarantees to support small and medium-sized developers and the build-to-rent sector. Reeves also highlighted specific funding for brownfield regeneration projects, such as £56 million to unlock 2,000 homes at Liverpool Central Docks. A £500 million boost to the Affordable Homes Programme (AHP) is expected to lead to thousands of new homes across England, aiding in the push to meet the Labour government’s goal of 1.5 million new homes over the next few years
2. Reforms to Right to Buy and Rental Stability
A notable reform was the reduction in Right to Buy discounts, enabling councils to retain full sale receipts from council homes. Reeves emphasised that these funds could then be
reinvested directly into new housing stocks and infrastructure, alleviating the pressure on councils to maintain and expand social housing In response to long-standing calls from housing advocates, the government announced five-year rent settlement for social housing providers, allowing them to increase rents in line with the Consumer Price Index (CPI) plus 1%. This rent stability is intended to foster a more predictable financial environment for housing providers, enabling ongoing investment in current housing stock and improvements in quality
3. Expanding Housing Supply Through Local Authority Investment
The Budget’s focus on local authorities and the private sector is aimed at fostering a collaborative approach. With £47 million in funding to support developments stalled by environmental regulations, the government intends to resume projects that might otherwise have been delayed indefinitely. Reeves’s commitment to “unlocking” growth in key areas like Cambridge aims to support regional development, contributing to the nationwide housing push.
J3 Managing Director Jack Bristow added, ‘The 2024 Autumn Budget’s housing focus signifies a robust commitment to addressing the UK’s housing challenges. Reeves’s approach, blending increased funding, industry incentives, and local authority empowerment, shows promise. However, the devil is in the detail and the government will now need to act quickly if they’re to build momentum, breathe confidence into the market
and deliver real change off the back of some grand promises.’
James Mole, “It’s clear to see that the Labour government are making housing a focus over this term, and the announcements made in the budget will be largely welcomed by our industry, although many will say they haven’t gone anywhere far enough. What has been announced is not a quick fix, though. The planning system will remain broken, despite the employment of 300 more planning officers, unless the bureaucracy and red tape are tackled. We will have to wait and see how the markets react to the budget, but if the Chancellor manages to avoid a Halloween spook, we will hopefully see interest rates trend downward in the coming months – which would be a big boost for SME developers.”
Key figures within the housebuilding industry welcomed the measures taken in the budget, along with the commitment to social housing and the Build to Rent sector. Many see today’s announcement as a firm indication that the Government is serious about addressing the housebuilding industry and the need to build more homes.
J3 Advisory remains committed to understanding the needs of the housebuilding industry, and are proactive in helping to educate stakeholders in how structural warranties play a key part in underpinning the housebuilding industry. If you have a project you wish to discuss, or want to understand more about what the Autumn. Budget means for your business, please call 020 3096 0718.
