This Month In Social Housing: October 2024

As October fades and November settles in, the brisk chill of winter begins to make itself known. Shorter days and frostier mornings remind us that the end of the year is quickly approaching. As we swap out pumpkins for poppies, prepare for Bonfire Night celebrations, and retrieve big coat from the recesses of the wardrobe, it’s clear that the cozy season has officially arrived. For many, November brings a moment to reflect, not only on the busy year gone by but also on the recent social housing news that may have slipped by while planning for the months ahead. While we can’t bring back the warmer days, we’re here to catch you up on the latest happenings in the sector. So, grab a warm drink and settle in for the top social housing stories from the past month in This Month in Social Housing: October 2024…

For 2025-26, social landlords can raise rents by up to 2.7%, reflecting a CPI increase of 1.7% plus an additional 1%. However, this modest rent rise may not address the sector’s financing challenges. Chancellor Rachel Reeves is considering a 10-year rent settlement allowing annual increases of CPI + 1%, but sector leaders, argue this approach is insufficient given the sharp rise in repair costs and demand since 2021. Analysis by the G15 group shows almost 300,000 social homes have been operating at a loss, losing £211.4m annually. Housing leaders urge the government to reinstate rent convergence and accelerate long-term funding for the Affordable Homes Programme.

LGA warns 10-Year Rent Settlement Could Leave Councils with £7bn Shortfall

The Local Government Association (LGA) has warned that a proposed 10-year rent settlement allowing CPI+1% increases will still leave councils with a £7bn income gap, according to a new Savills report. Due to financial strain, councils face an “impossible choice” between running Housing Revenue Accounts (HRAs) at a deficit or failing to meet essential repair obligations. Rising repair costs, statutory safety upgrades, and energy efficiency standards have pushed council housing finances to a precarious point. The report calls for immediate funding increases and a revised council housing finance regime to enable councils to meet Decent Homes Standards and build affordable housing.

The Regulator of Social Housing (RSH) reports a net gain of just 700 new social homes in England for the year ending March 2024, with Right to Buy (RTB) sales offsetting increases from private registered providers. While private providers added around 5,200 social rent homes, local authorities lost about 4,500 homes, mainly due to RTB. In response, the government announced reduced RTB discounts and full receipt retention for councils to preserve social housing stock. The report reveals 4.5 million social homes across England, with affordable and low-cost homeownership homes driving growth. Nearly 42,000 homes were below the Decent Homes Standard, with remediation efforts underway. Social rent averaged £105.22 weekly, varying by region, with London being highest.

The Autumn 2024 Budget, delivered by Chancellor Rachel Reeves on Wednesday 31 October, introduced key measures for the UK social housing sector, but leaves much to be desired in terms of scale. Key provisions include £500 million for affordable housing, allowing the construction of 5,000 homes—far below target. Rent caps tied to CPI + 1% offer financial predictability for providers, though rising costs may burden tenants. Homelessness prevention receives £233 million, while energy efficiency initiatives get £3.4 billion. Welfare support extensions and a rise in National Insurance pose further challenges for housing associations, whilst local councils gain greater reinvestment power with Right to Buy changes (though calls for broader solutions have been made). Read Mobysoft’s full Autumn Budget analysis for more.

Councils Expected to Save £1.2bn Over Five Years from Right to Buy

Local authorities are projected to save nearly £1.2 billion by 2029-30 due to reduced Right to Buy (RTB) discounts and full retention of RTB sale receipts, allowing councils to reinvest in social housing. Chancellor Rachel Reeves’ Budget cut maximum RTB discounts, with caps now ranging from £16,000 to £38,000, depending on the region. The Local Government Association (LGA) praised the reform, noting it will aid in replacing sold homes and preserving council housing stock. A £500 million boost to the Affordable Homes Programme and a five-year rent settlement were also announced, which LGA chair Louise Gittins described as positive but stressed the need for a 10-year rent settlement to stabilise council finances and improve long-term planning.

And that’s another This Month in Social Housing done and thoroughly dusted! We’re all off to start wrestling with the thermostat, triple-check if the boiler still works, and begin frantically digging out the waterproof boots that probably have one good season left in them. With just a month to panic about holiday plans and try not to prematurely snack on the Christmas chocolates, it’s safe to say we’re on quite the schedule! Don’t worry, though— we’ll be back next month to bring you the latest social housing news (and perhaps a few more winter survival tips too). Until then, adiós!

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Dean Quinn

Content Manager at Mobysoft

Dean oversees all the content we produce here at Mobysoft, commissioning, editing, and even writing some of the insightful editorial we bring to you on a regular basis. With a background in consumer journalism and a raft of content marketing experience gained from working with huge brands spanning mobile tech and automotive, right through to professional sports and lifestyle sectors, he knows a thing or two about creating content that engages. Dean also holds the mantle of being our resident grammar pedant. However, when he’s not getting angry about dangling participles, he spends his time going to gigs, and watching his beloved Stoke City FC.