LPDF Welcomes Historic Investment in Social and Affordable Housing and Long-Term Rent Settlement

The Land, Planning and Development Federation (LPDF) has today welcomed the Government’s Spending Review, which outlines the biggest boost to social and affordable housing investment in a generation and pushes us towards the long-term security the social housing sector needs.

As confirmed in the Chancellor’s announcement, the Government will commit £39 billion over 10 years to a new Affordable Homes Programme, nearly doubling the average annual investment by the end of this Parliament compared to the previous government. This unprecedented commitment aligns with the ambition to deliver 1.5 million new homes.

The LPDF also strongly supports the introduction of a ten-year rent settlement from 2026, which will allow social housing rents to increase by CPI+1%, offering Registered Providers the confidence and financial stability to invest in both new and existing homes.

This long-term settlement and substantial funding reflect policies the LPDF has long advocated for — measures that unlock development, attract private investment, and ensure the delivery of homes for those most in need.

Too many projects have been held up because developers have been unable to find Registered Providers to take up new social and affordable homes. Funding certainty will have a knock on impact on the construction industry as a whole, ensuring that homes of all tenures can be delivered quickly.

Paul Brocklehurst, Chair of the LPDF, said:

“We welcome this landmark investment in social and affordable housing. A long-term rent settlement of CPI+1% will empower Registered Providers to plan ahead, borrow more effectively, and bring forward new projects with confidence. The LPDF has consistently called for this kind of stability, and it is encouraging to see Government respond with ambition.”

Sam Stafford, Managing Director of the LPDF, added:

“The £39 billion Affordable Homes Programme is hugely welcome. Affordable Housing needs investment at scale. The development sector has a vital role to play, working in partnership with Registered Providers and local authorities to ensure these homes are delivered.”

The LPDF also welcomes the Government’s continued commitment to planning reform, which the Office for Budget Responsibility estimates will contribute £6.8 billion to the economy and support housebuilding at its highest level in 40 years by the end of the decade.

The LPDF will continue to push the government to ensure that our planning system becomes genuinely plan led, offering builders and investors certainty so enable the delivery of new homes.