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As a recruitment specialist in the social housing sector, I am sharing key insights from the upcoming UK Spending Review (June 11, 2025) and its implications for Development Directors. The housing crisis, marked by record-high waiting lists, rising homelessness, and escalating costs, demands strategic investment. Below, I outline the critical points from recent data and policy announcements, focusing on their impact on social housing delivery and recruitment needs.
The UK’s social housing sector faces unprecedented challenges:
Demand Surge: As of 2024, 1,330,611 households are on social housing waiting lists in England, the highest in a decade.
Homelessness Crisis: 127,890 households, including 165,510 children, were in temporary accommodation by late 2024, a 13.6% increase from 2023. Projections suggest 206,000 children could be affected by 2029 without intervention.
Supply Shortfall: Only 204,611 new homes were completed in England by March 2025, down 9% from the prior year and far below the 367,000 needed annually to meet the government’s 1.5 million homes target by 2029.
Affordability Gap: Social housing saves tenants £5,000 annually compared to private rentals, underscoring its critical role.
The Spending Review will shape social housing delivery through multi-year funding and policy reforms. Key announcements include:
£2 Billion Down Payment: This capital funding aims to deliver 18,000 social and affordable homes by June 2029. While a positive step, it falls short of the £10 billion annually local authorities estimate is needed for 145,000 homes per year.
Affordable Homes Programme (AHP): The successor to the 2021-2026 AHP (currently £2.3 billion/year) is expected to prioritise social rented homes with higher grant rates. Clarity on funding beyond 2026 is critical.
Social Housing Decarbonisation Fund (SHDF): With £1.29 billion for Wave 3 (2025-2028), this fund supports energy efficiency upgrades to meet EPC band C by 2030, reducing tenant bills and carbon emissions.
Planning Reforms: Simplified rules for small and medium sites, SME support, and a new National Housing Delivery Fund aim to boost delivery by 170,000 homes by 2029/30.
Construction Skills Package: Plans to train 120,000 apprentices, including in construction, to address critical skills shortages.
Financial Pressures: 72% of councils with Housing Revenue Accounts (HRAs) expect to dip into reserves in 2025/26. Rent caps have led to £600 million in lost revenue, and sector debt is projected to reach £116 billion by March 2025.
Rising Costs: Construction costs range from £1,750–£4,000/sqm, with professional and statutory fees adding 22.5%. Operating costs per property rose 12% to £5,136 in 2024, driven by inflation and regulatory demands like Awaab’s Law.
Regulatory Demands: Awaab’s Law and the updated Decent Homes Standard require increased investment in repairs and maintenance, straining budgets and necessitating more staff.
The Spending Review’s outcomes will drive demand for skilled professionals:
Construction Roles: The skills package and £112 million in training funds will increase demand for project managers, surveyors, site supervisors, and tradespeople (e.g., plumbers, electricians). Recruitment agencies must source apprentices and experienced workers to meet these needs.
Compliance and Maintenance: Awaab’s Law and the Decent Homes Standard will require more building surveyors, compliance officers, and retrofit specialists to address hazards like damp and mould.
Planning and Development: £50 million to recruit 300 new planners will boost demand for planning officers and environmental assessors, critical for implementing reforms.
Strategic Leadership: Development Directors will need to navigate funding uncertainties, prioritise social rent projects, and align with decarbonisation goals, requiring strategic hires in programme management and financial planning.
Advocate for Long-Term Funding: Push for a 10-year rent settlement (CPI+1%) to enable borrowing and planning for new builds.
Leverage SHDF and AHP: Prioritise projects that align with decarbonisation and social rent goals to maximise funding.
Build Skilled Teams: Partner with recruitment agencies to source talent for construction, compliance, and planning roles to meet regulatory and delivery demands.
Embrace Planning Reforms: Utilise simplified rules and SME support to accelerate project pipelines.
The June 2025 Spending Review is a critical opportunity to transform social housing delivery. While the £2 billion down payment and planned reforms signal intent, the sector needs sustained, multi-year investment to meet demand and regulatory requirements.
The June 2025 Spending Review is a defining moment for social housing. At Goodman Masson, we understand the sector’s challenges and are committed to connecting you with the talent needed to deliver safe, affordable, and sustainable homes. Our tailored recruitment solutions, deep industry knowledge, and passion for positive impact make us your trusted partner.
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