In light of yesterday’s 2024 Spring Budget announcement, the anticipation within the housing sector remains tinged with uncertainty. Amidst promises from the Conservatives to focus on levelling up and persistent reminders from the Labour Party to address the housing crisis during Prime Minister’s Questions, expectations were high for a comprehensive budget strategy to make homes more affordable and help alleviate homelessness.
Unfulfilled Promises and Missed Opportunities on Housing:
Chancellor Hunt’s pledges fell short of the ambitious vision many had hoped for. Whilst Hunt marked a commitment to ‘build homes for young people,’ ‘reform the property tax system,’ and ‘allocate £240 million to housebuilding projects in London,’ local councillors expressed their disappointment with his overall pledges. Gavin White, a Labour Councillor and the Executive Member for Housing and Development, expressed his discontent, stating, ‘The current government and the recent budget lacked ambition, vision, and commitment to meet the needs of millions of people in the UK.’
White’s disappointment speaks to the urgency of the situation, calling for the construction of at least 1.5 million new homes over the next five years. He emphasises the need to ‘build 90,000 social, council, and genuinely affordable homes annually,’ accompanied by a plea for additional funding to ‘facilitate development on brownfield land and a demand for planning reforms to expedite the necessary initiatives.’
Councillor Peter Diplock from Eastbourne Borough Council sheds light on missed opportunities within the budget. He remarks, ‘he could have committed to returning to multi-year financial settlements for local government but didn’t. He could have committed to pausing Right to Buy but didn’t.’
Diplock further highlights the urgency for a review of the cap on housing benefit subsidy for local authority housing placements, pegged to 2011 levels. The lack of commitment to such measures underscores the challenges faced by local governments striving to meet the evolving needs of their communities.
Addressing Housing and Homelessness: The Need for Solutions:
In the face of the pervasive issue of homelessness, local councillors express their dissatisfaction with Hunt’s perceived lack of commitment to resolving this critical matter.
Recognising the profound impact of housing on overall health, Chancellor Jo Rust underscores the human cost associated with a lack of houses and homelessness. She casts doubt on Hunt’s promise to build one million homes within parliament, asserting that such a pledge is unlikely to materialise. This scepticism raises important questions about the credibility of proposed solutions.
Kate Henderson, CEO of the National Housing Federation, echoes these concerns particularly emphasising the dire situation of child homelessness and the prevalence of overcrowded homes. Henderson asserts that these pressing issues underscore the immediate need for urgent action. As stakeholders express their disappointment, it becomes increasingly evident that a robust strategy is crucial to address the challenges of homelessness.
White further highlighted that ‘On homelessness, we need an end to section 21 of fault evictions, and a clear commitment to support and fund local councils to build social housing, reduce reliance on temporary accommodation and prevent homelessness in the first place.’ Thus, it is clear, rather than band-aid sticking on these issues, we need to put measures in to tackle the root causes of the homelessness problem.
Final Thoughts: A Call for Long-Term Commitment to Secure Housing:
The housing crisis remains a formidable challenge, requiring a transformative shift in approach and funding. As stated by Kate Henderson, CEO of the National Housing Federation, ‘the government should put an end to short-term thinking and piecemeal policy decisions.’ A national long-term plan for housing is imperative, one that aims to deliver secure, affordable, and high-quality homes for local communities.
The government’s commitment to resolving the housing crisis will define its legacy, shaping the future of communities across the United Kingdom. It is not just a matter of policy but that of morality to ensure that everyone has access to a secure and affordable place to live. The time for action is now, and the government’s response to this housing challenge will determine the trajectory of the nation’s future well-being.
Chamber UK’s partner policy institute Curia recently conducted an inquiry on Housing and Homelessness which you can find here.
