Wednesday’s Spending Review, unveiled by Chancellor Rachel Reeves, marks a significant and positive moment for the social housing sector. With a challenging commitment to build 1.5 million new homes including a substantial amount of those being affordable, the material increases in public investment announced by the Chancellor signals that the government is serious in its intent to tackle the housing crisis head-on.
English Rural welcomes this renewed commitment, levels of financial support and the opportunity it presents for the housing association sector. However, we must also highlight that how this will translate into support for rural communities remains uncertain: the continued lack of specific reference for rural affordable housing leaves a question mark over how funding will be directed to support the needs of those living and working in the countryside, where affordable challenges remain amongst the most severe.
The Spending Review outlines a £39 billion investment in affordable housing over the next 10-years, and a new ten-year housing rent settlement for housing associations at levels asked for by the sector. The magnitude and certainty will provide the confidence needed and help to leverage significantly higher levels of private capital from housing associations as they now work to deliver shared growth ambitions. The government has also pledged to reduce Right to Buy discounts, helping to retain more homes within the social housing stock. The continued investment in environmental improvements from a renewed Warm Homes Fund will also deliver positive change for low-income households, driving down carbon usage and household energy bills.
The investment decisions are progressive measures, and they will undoubtedly help ease pressures nationwide. But for rural communities, the worry remains that their complex needs may be overlooked as government and its agencies begin to spend the money provided for — with their increasingly urgent needs not addressed at the same level as urban and metropolitan peers.
Over the past two decades, the shortage of affordable homes in rural England has become a critical issue. Rising house prices, limited land availability, and planning constraints have combined to create a perfect storm. Young people and families are being priced out of the communities they grew up in, while key workers struggle to find homes near their places of employment. The result is a slow erosion of rural life, with schools, shops, and services under threat as populations decline or age. Recent research using the government’s own assessment methodology showed that the need for an affordable home in smaller rural settlements was twice that of urban areas.
Despite this, the Spending Review contains no targeted measures to address the unique challenges facing rural housing. As yet, there is no dedicated rural housing fund, no rural exception site incentives, and no tailored planning reforms to unlock small-scale developments that are so vital to sustaining rural communities. Along with wider countryside and affordable housing advocates, English Rural has called for the government to support a package of measures to boost delivery of affordable rural homes. The outputs from the Comprehensive Spending Review offer the opportunity to take this forward as funding announcements translate into investment decisions and policy.
Rural areas are not just picturesque backdrops—they are living, working communities that contribute significantly to the national economy and cultural identity. Ensuring they remain vibrant and inclusive requires a housing strategy that recognises their specific needs.
We continue to advocate that the government builds on the momentum of this Spending Review by introducing a rural housing strategy directing investment in a way that includes dedicated funding, planning support, and policy frameworks tailored to rural contexts. Without this, the affordability crisis in rural England will continue to deepen, with long-term consequences for community cohesion, economic resilience, and social equity.
Martin Collett, Chief Executive, English Rural, said:
“Today’s announcements are extremely welcome. The level of investment and long-term approach taken will provide housing associations like English Rural with the confidence we need to step-up and play an active role in helping the government work towards its ambitious targets for affordable housing delivery. To be truly equitable and impactful, the funding provided now needs to target the needs of all communities, recognising the interconnection between the countryside with towns and cities. Rural England has a valuable and critical role to play in supporting growth, prosperity, food and energy security, the fundamental behind all of these is the provision of a secure, warm and affordable home.”
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