Labour urged to set social housing targets and kickstart a ‘council house revolution’

Labour housing secretary Angela Rayner has been urged to set a social housing target to put “pressure on the system” to build the “council house revolution” needed to tackle the housing crisis.

The deputy prime minister laid out Labour’s “radical plan” to reform the planning system and introduce mandatory housing targets for local authorities to build up to 370,000 homes a year on Tuesday (30 July).

Rayner also committed to building more social housing among the promised 1.5 million homes the party has promised to build while in power.

She called on “local authorities, housing associations and industry to work with me to deliver a council house revolution”, adding that “injecting confidence and certainty into social housing is how we get Britain back to building”.

“Today marks a significant step to getting Britain building again,” said Rayner.

“Our decisive reforms to the planning system correct the errors of the past and set us on our way to tackling the housing crisis, delivering 1.5 million homes for those who really need them.    

“And something I am personally proud of, our new flexibilities for councils will boost the number of social and affordable homes, and give working families a better route to a secure home.” 

The Big Issue’s Blueprint for Change called on the new government to increase the amount of social housing and affordable housing delivered across the country to lift people out of poverty.

So far, the party is yet to lay out exactly how many of its housing targets will be for social rent homes.

John Glenton, executive director at Riverside housing association, called on Labour to publicly set a social housing target to bolster building after pointing out that more social homes were completed between 2010 and 2012 than over the past decade.

A total of 77,239 social homes were built in the financial years between 2010 and 2012 compared to just 76,308 between 2013-14 and 2022-23, according to Riverside’s analysis.

“By announcing a target publicly, the government creates pressure on the system to deliver the goal,” said Glenton.

“As well as the target for 1.5m homes over the course of this parliament we believe an annual target should be set for the delivery of new social homes to create a greater impetus to build society’s most affordable homes.”

Housing charity Shelter has previously said 90,000 social homes are needed every year for the next decade to make up for years of chronic lack of delivery.

Rayner also promised to reform the Right to Buy scheme to help local authorities protect their social housing stock.

The measures include reviewing discounts introduced in 2012 and give councils increased flexibility to spend receipts from sales with a consultation on wider reforms to come in the autumn.

Polly Neate, chief executive of Shelter, said: “The deputy prime minister is absolutely right to put the delivery of new social homes at the heart of her plans. 

“The government’s ambition must keep growing until it hits the 90,000 social homes a year that are necessary to end homelessness and relieve the extreme pressure on private renting.”

Following chancellor Rachel Reeves’ accusation that the previous government was not honest about a £22bn a year financial black hole, Rayner also took aim at the Tories over the party’s record on housing.

She said that the previous government’s decision to make housing targets advisable rather than mandatory contributed to falling housebuilding levels. 

The Labour MP also said the Tories’ £11bn Affordable Homes Programme was set to deliver 110,000-130,000 homes rather than the promised 180,000.

“Simply not enough homes. Those on the opposite benches knew this,” said Rayner.

“The number of new homes is likely to drop below 200,000 this year. Unforgivable.”

In response, shadow housing secretary Kemi Badenoch raised concerns about the “beauty” of new homes being built and warnedLabour now “has a responsibility to explain the economics and allocate the funding that we all know will be needed for this plan”.

Labour’s planning reforms laid out changes to the national planning policy framework (NPPF) and already announced plans to target disused areas of the green belt, known as the grey belt.

Councils will have to review their green belt land to meet housing targets, while brownfield land will be the first port of call for development.

Projects on the grey belt will be subject to Labour’s ‘golden rules’, which include delivering 50% affordable homes, increasing access to green spaces and putting the necessary infrastructure in place, such as schools and GP surgeries.

There will also be a new method for calculating mandatory housing targets to ensure development is proportionate to the size of existing communities, while “adding an extra level of ambition” in the most unaffordable areas.

A long-term housing strategy has also been promised for later in the year.

The Home Builders Federation (HBF) backed Rayner’s plan with a statement signed by more than 30 home builders. 

Neil Jefferson, HBF chief executive said: “The scale of the government’s housing ambition has given hope to the home building industry that stands ready to increase supply and tackle the country’s housing shortage.”

However, Labour has been urged to boost investment in affordable homes.

Rayner said the party will lay out its spending plans at the next fiscal event.

Cara Pacitti, senior economist at the Resolution Foundation, said: “Planning reform alone is unlikely to deliver all the affordable homes we so desperately need in this country, and a significant ramping up of affordable housebuilding is likely to require additional public funding too.

“The government has said it will bring forward details of future public investment in affordable housing at the next spending review. The scale of that funding will be key to whether we see a significant increase in the delivery of affordable homes over the coming parliament.”

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