08 Aug 2025

Blog: 8th August, 2025- Sharpe Pritchard, Corporate Partner

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A UK housing ‘revolution’: MHCLG announces £39bn social housing programme and regulatory reforms

MHCLG has launched a social and affordable housing transformation programme combining large scale investment with sweeping quality reforms, promising to address both the quantity and standard of homes available to millions of families across the country and is central to the government’s broader ‘Plan for Change’.

Tackling the housing crisis at scale

The centrepiece of this initiative is the proposed £39bn Social and Affordable Homes Programme, designed to deliver around 300,000 new social and affordable homes over the next decade. With at least 60% designated for social rent, approximately 180,000 homes, this represents a six-fold increase compared to the previous decade and aims to address the crisis of over 165,000 children living in temporary accommodation.

Deputy Prime Minister Angela Rayner has suggested a five-step plan to provide the framework for this transformation, aiming to:

  • deliver unprecedented grant funding,
  • rebuild sector capacity to borrow and invest,
  • establish stable regulatory frameworks,
  • reinvigorate council housebuilding, and
  • forge strategic partnerships to build at scale.

This sits in addition to a 10-year social rent settlement that finally allows social housing providers to crystallise their development plans with greater confidence.

Whilst it remains to be seen whether the practical capacity, supply chain capabilities, and sustained political will exist to achieve such unprecedented building rates, the government’s intention is that this programme will lead to positive changes for millions of tenants whilst laying the foundation for a more equitable and sustainable housing system.

Beyond numbers: improving housing quality and efficiency

Alongside this investment, the government plans to modernise housing standards through comprehensive reforms to the Decent Homes Standard (DHS) and extension of Minimum Energy Efficiency Standards (MEES) in England. For the first time since 2006, the DHS technical standard is being updated to reflect modern living requirements with the most significant change being its extension to privately rented housing for the first time.  A new criterion will also be introduced to address damp and mould issues in light of Awaab’s Law.  The new MEES standards will require all social homes to reach EPC C by 2030, while the modernised Decent Homes Standard seeks to prioritise warm, efficient homes that reduce energy bills for tenants regardless of whether they rent from a council, housing association, or private landlord with the aim of ensuring that low-income households are not forced to choose between heating and other essentials.

Implementation and timeline

Both the reforms to the Decent Homes Standard and the new MEES for the social rented sector are subject to consultations which run until 10 September 2025 with the government seeking the views of stakeholders (landlords, tenants and other interested third parties) to provide substantial input into how these changes will work in practice.

Gemma Duncan & Susie Sharpe 

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