Out of reach’: stalled newbuilds leave Labour’s social housing

Published: 31 October 2025. The English Chronicle Desk. The English Chronicle Online.

The situation for social housing in England is reaching a crisis point, with families waiting decades—sometimes centuries—for a suitable home. In Bath and North East Somerset, for instance, some families seeking a four-bedroom council property are reportedly facing waits of up to 200 years. Across the country, England is producing just over 10,000 social homes annually, far short of what is needed to meet demand.

Social housing formed a core part of Labour’s election pledge to deliver 1.5 million new homes over five years. In response to the growing crisis, the government announced in July plans to spend £39 billion on 300,000 affordable homes over the next decade, with 60% allocated for social rent. Yet, despite the promise of bold targets and significant investment, progress is lagging, leaving many questioning whether these plans can ever come to fruition.

In London, construction activity has largely stagnated. In an effort to boost housing delivery, the housing secretary, Steve Reed, and the Mayor of London, Sadiq Khan, recently unveiled a package of reforms. One contentious measure reduces the proportion of affordable housing required for planning fast-tracking from 35% to 20%. While Reed hailed the change as a “shot in the arm” to jumpstart building projects, homelessness campaigners remain wary. Mairi MacRae, campaign director at Shelter, emphasised the need for guarantees, stating that adjustments to planning rules must result in more social housing rather than fewer.

The government’s package includes £322 million to establish a City Hall developer investment fund and low-cost loans via the new National Housing Bank, complementing broader reforms in planning law aimed at accelerating construction and stimulating the economy. Yet, even with these interventions, housebuilding progress continues to fall short. According to the latest figures, 231,300 new homes were delivered across England in the year to September 2024, up from 186,600 in the previous year. To meet Labour’s 1.5 million target, construction must reach at least 300,000 homes annually—a pace not seen since the 1970s.

Mayor Sadiq Khan, who grew up in a council flat, described the sector’s struggles as “a perfect storm” caused by high interest rates, rising material costs, the lingering effects of the pandemic, and the consequences of Brexit. Skills shortages and new regulations further exacerbate the challenge, particularly in the social housing sector, where profit margins are naturally lower. Organisations such as Shelter and the National Housing Federation estimate that England needs around 90,000 new social homes per year.

Despite urgent demand, the latest data paints a bleak picture. In the financial year ending March 2024, of the 63,743 affordable homes completed, only 10,153 were for social rent—a subsidy designed for low-income families, typically set at half the market rate. The remaining homes were shared ownership, rent-to-buy, or affordable rent options, the latter often priced at around 80% of local market rates, which remain inaccessible to many struggling households.

Experts have proposed “densification”—building more units per square metre—as a partial solution. At a summer forum hosted by Lloyds Banking Group, planners and housing professionals discussed this approach, cautioning that high-density development must be implemented thoughtfully to preserve communities and ensure quality of life. In Basingstoke, Hampshire, Sovereign Network Group (SNG), one of England’s largest housing associations, is navigating these complexities. With 85,000 homes under management, the group faces the challenge of balancing increased housing delivery with community acceptance.

SNG has embarked on a 30-year regeneration plan in Basingstoke’s Buckskin and South Ham neighbourhoods, an area home to around 12,000 residents. The plan aims to revamp the 4,600-home estate—roughly equivalent to London’s Olympic Park—by improving layouts, creating green spaces, and constructing new houses and flats. Retrofitting existing homes is also part of the strategy. The organization has secured funding to deliver more than 25,000 homes across southern, western, and eastern England over the next decade.

While detailed plans are expected early next year, preliminary sketches released in spring have caused unease among some residents and private homeowners. Concerns focus on the potential demolition of existing homes to make way for five- to six-storey apartment blocks. Maggie Hardy, 79, voiced fears that the demolition of familiar bungalows would erode community ties: “Older people don’t want to go in a block of flats where the lift breaks down twice a week.”

SNG has repeatedly assured residents that no final decisions have been made. Meetings with the community are ongoing, and any compulsory purchase orders would be considered only as a last resort. Stephen Baverstock, a long-term SNG tenant involved in the co-design group, welcomed improvements to infrastructure and amenities, including better road layouts, additional parking, and new medical facilities, but stressed that uncertainty about the scale of demolition remains a major concern.

Local MP Luke Murphy echoed these sentiments, emphasizing that redevelopment must involve residents rather than being imposed on them: “This is a close-knit community, built over generations. Any plans must be carried out with residents, not done to them.”

The financial health of housing associations also impacts construction capacity. Peabody, a major social landlord, experienced a credit rating downgrade in July due to weaker-than-expected performance. L&Q, which owns 105,000 homes, was forced to pause some building projects in 2024 because of funding shortages. Yet, optimism is returning. Fletcher-Smith of L&Q expressed renewed confidence in government support and plans to start construction on 2,000 new homes in the coming year.

Government initiatives, including the £16 billion backing for the National Housing Bank and recent regulatory changes allowing social landlords to increase rents slightly above inflation for the next decade, aim to create financial certainty and stimulate construction activity. Housing ministry officials highlighted that these measures are intended to accelerate progress and deliver the 1.5 million homes promised.

Despite these efforts, it is clear that tackling England’s social housing crisis will take time. The combination of economic pressures, regulatory hurdles, and community sensitivities presents a complex landscape for both policymakers and developers. As campaigns continue, families waiting for affordable housing remain acutely aware of the urgent need for solutions that are both sustainable and equitable.

The scale of the challenge underscores the importance of long-term planning, collaboration between local authorities, housing associations, and the private sector, and a commitment to delivering homes that meet genuine need. For now, the stark reality is that many families face years—sometimes decades—of uncertainty, while the clock ticks on promises that are yet to materialize.