Labour is placing all its bets on billions of pounds of investment to reverse Britain’s decline, according to Angela Rayner, who promises that the housing crisis will ease by the end of the current parliament. The UK housing secretary is in a race to convince housing associations to take on social housing projects, totalling nearly £40 billion to be spent over ten years, the result of extensive talks with the Treasury.
Rayner acknowledged that it is the beginning of efforts to persuade associations struggling financially to reinvest in social housing, noting that many are currently turning down offers from developers for ‘section 106 homes’ as part of their social housing duties.
The clarity on whether the majority of homes will be for social rent remains unclear. Rayner stated the government’s priority is to significantly increase the number of available social rents, which is a major pressure point, especially with the current 164,000 children in temporary accommodations.
The goal of building 1.5 million homes by the end of the parliament has always been an “ambitious target,” which industry experts have doubted could be met. Initially, when the government inherited a financial shortfall, there were doubts about meeting this goal. However, there was no disagreement in the cabinet regarding the determination to at least begin turning the tide on the housing crisis.
While the investment will not immediately benefit young people in insecure tenures or on the waiting list for social housing, it promises the largest wave of social and affordable housing in a generation. It will provide a significant trajectory toward resolving the crisis but will not solve it within a few years.
Rayner emphasized the importance of allowing social landlords to raise rents by 1 percentage point above inflation and the potential of the renters’ rights bill to improve living standards, including for tenants in private accommodations.
She also highlighted her personal experience growing up in social housing, including a recent visit to a friend in dire living conditions, illustrating the need for change and protection against evictions and poor living standards.
The minister expressed concern about the younger generation’s frustration, particularly regarding housing and the general state of public services and realm. She believes the government’s investment strategy could address these issues by focusing on energy transitions, defense spending, and the construction industry to secure the nation’s future and job prospects.
Looking forward, council tax is expected to rise by 5% annually to fund local services, with councils receiving a 1.1% increase in grant funding, aiming to offset the 2.6% increase in spending power.
Rayner, acknowledging the prolonged impact of austerity on councils, stated that while this is just the beginning of relieving these pressures, she understands the challenges ahead and the gradual process of recovery.
Source: https://www.theguardian.com/politics/2025/jun/14/labour-investment-reverse-uk-decline-angela-rayner-housing
