05 Jul 2024

Making the most of the first 100 days

The new Labour government has inherited many social and economic challenges. Housing can be a big part of the solution, writes Rachael Williamson.

At CIH, we’ve been calling for a long-term housing plan, backed by targets to meet housing needs. We set out our proposals in our Homes at the Heart strategy and 10-point plan, informed by members and published last autumn.

Many of the reforms needed require consultation and time to implement. However, the government could take some important, low-cost actions within its first 100 days, which would be easy to implement, have an instant impact, and set the tone for more ambitious changes.

We propose five immediate priorities, as outlined below (not an exhaustive list).

Release public consultations on the Decent Homes Standard and Minimum Energy Efficiency Standards in social housing 

The review of the Decent Homes Standard (DHS) and examination of options for Minimum Energy Efficiency Standards (MEES) have been ongoing for several years. Social housing providers have invested significantly in improving the quality and energy efficiency of their homes, but with no guarantee that improvements will meet higher regulatory standards. 

Releasing these consultations would provide certainty on the government’s intention to introduce firm, stable regulation of social housing quality, unlocking more investment; and lay the groundwork for appropriate funding arrangements to support the sector to meet the new requirements. 

It would also give social housing tenants confidence that driving up standards is a firm priority for the new government.

Review the current DLUHC capital spending programme 

Analysis published in CIH’s 2024 UK Housing Review (UKHR) reaffirms the need for a total supply of 300,000 new homes each year, including 60,000-70,000 social-rented units per annum in the initial period. From 2030, this should rise to around 350,000 new homes each year, of which 90,000 should be for social rent.  

In the UKHR’s assessment of all forms of government support for new housing investment between 2021/22 to 2024/25, comprising £41 billion in total, slightly more than half (51%) was directed towards the private market and 49 per cent for affordable housing. This totals around £5 billion of investment p.a. for the private market. 

Whilst comparisons cannot be made strictly on a like-for-like basis, capital support for affordable housing supply is much higher in Scotland (90%), Wales (82%) and Northern Ireland (100%). 

The new government should provide a much-needed boost to affordable housing supply by rebalancing the Department for Levelling Up, Housing and Community’s (DLUHC) capital spending and allocating a more significant proportion of the programme to social-rented homes. This would have little to no effect on overall government spend.   

Publish the technical consultation on the implementation of M4(2) accessibility standards for new homes 

In September 2020, DLUHC consulted on raising accessibility standards in new homes. In July 2022, it confirmed its intention to mandate the current M4(2) (Category 2: Accessible and adaptable dwellings) requirement in Building Regulations as a minimum standard for all new homes, subject to further consultation on draft technical details. This has significant cross-sector support in the housing, health, and built environment sectors. 

In March 2024, the Building Safety Regulator said the draft technical details would be published for consultation before the summer recess. Reviewing and publishing the draft details for consultation would give certainty to developers that M4(2) will be the standard they are required to build to from April 2025, and signal to disabled people that improving the accessibility of new homes is a priority for the new government.

Reduce discounts under the Right to Buy scheme and allowing councils to set the discount rate in their area 

Research by Savills estimates 100,000 homes are likely to be sold through Right to Buy (RTB) by 2030, with just 43,000 replaced, as high discounts leave councils without funding to replace homes on a like-for-like basis. 

RTB can play an important role in enabling families to get on the housing ladder, but only if sufficient progress is made toward housebuilding targets to ensure it does not result in a net loss of social homes.  

While the long-term future of RTB requires more detailed policy thinking and public consultation, the new government could take immediate steps to stem the flow of social homes into the private-rented and owner-occupied sectors by freezing current discount levels. This would stop them from rising with inflation and enable councils to set the discount rate in their area according to local discretion. 

Implement the measures committed to in the Supported Housing (Regulatory Oversight) Act 2023 and exploring long-term funding options for supported housing 

The Supported Housing (Regulatory Oversight Act), which passed in 2023, provides a suite of powers to drive up standards. The new government should conclude recruitment for the national expert advisory panel, launch consultations on national standards for accommodation and for local authority licensing schemes, and work with the expert panel and wider sector to explore possibilities for a long-term revenue funding stream for supported housing. 

Prompt action here would allow developers to move forward with confidence, establishing an immediate pathway to growing the quality and quantity of accommodation and support for some vulnerable groups.   

Going further 

It would need some upfront investment, but given the growing pressures on council budgets from rising homelessness, the new government should also make money available to local authorities so they can acquire homes for temporary accommodation. This would generate considerable long-term savings and relieve pressure on stretched local authority budgets. 

We do also support early action on the many priorities set out in our 10-point plan, as well as clarity on next steps for the competence and conduct standard, consulted on earlier this year, so the sector can move forward and prepare.

Note: This is an updated version of an article originally written for Red Brick

Written by Rachael Williamson

Rachael Williamson is the head of policy and external affairs at CIH.