The Social Housing Pipeline: Commercial Opportunities for Developers
In her Spring Statement, Rachel Reeves announced £2 billion of grant funding intended to pay for 18,000 new affordable homes, contributing to the government's target of 1.5 million homes in England over this Parliament. The move has caught the attention of private housebuilders as well as social housing providers, both of whom see commercial openings in it.
According to Glenigan, 419 housing association projects across England, covering 33,373 homes, already have planning permission but have not yet started, and the extra money should help get them under way. The pipeline varies sharply by region. London and the South East each have 74 approved projects, amounting to 10,944 and 5,340 homes respectively. The West Midlands has 50 projects (3,594 homes), the East 53 (2,532), the North West 46 (2,639), Yorkshire and The Humber 42 (2,850), the South West 42 (1,936), the East Midlands 25 (2,100) and the North East 13 (1,438). Looking at the figures region by region helps developers see where the best prospects lie.
The funding could also benefit private schemes. Some builders have had difficulty finding a housing association prepared to take on the affordable units required by Section 106 agreements. With more grant available, social landlords should be better able to buy those homes, letting developers satisfy their planning obligations, progress the rest of the site and improve their cash flow.
Taken together, the extra money should allow work to begin on a number of social and private sites in the months ahead.
