Spring Spending Review 2025: What you need to know
Government pledges £39 billion boost to support new affordable homes across the UK
On June 11th 2025, the Government outlined its long-term Spending Review plans, with housing placed as a focal point of the announcement – a move that recognises and addresses the rising demand for accessible routes to homeownership. Upon delivering the announcement, Chancellor Rachel Reeves commented that “social housing [had been] neglected for too many decades, but not by this Labour government.”
From major investment in affordable homes to increased support for local councils and housing associations, here’s a breakdown of the key updates for aspiring homeowners.
Funding boost for affordable homes
Central to the Spending Review is an unprecedented £39 billion investment in the Affordable Housing Programme (AHP), spanning 2026-2036. Nearly doubling the existing housing funds, this package supports local authorities, housing associations and private developers. It includes flexibility for social landlords to raise rents slightly above inflation, helping to underpin the delivery of tens of thousands of new homes. Several towns, such as Blackpool, Preston, Sheffield and Swindon, have already put themselves forward for the funding.
Jade Turnstill, Head of Brand & Content at Share to Buy, comments: “The Chancellor’s announcement represents a step forward in addressing the challenges facing the housing market. The scope of this 10-year programme – with funding available to local authorities, housing associations and private developers – has the potential to accelerate the delivery of new social and affordable homes across the country in a significant way. It’s a welcome move that aligns with the needs of a growing population of aspiring homeowners.”
Strengthening the future of construction
The funding announcement has brought long-term certainty, fuelling confidence and delivering stability the sector has long demanded. According to John Newcomb, CEO of the Builders Merchants Federation, this funding will “boost the building of much‑needed social and affordable housing” and “provide the crucial market stimulus.”
A source within the government highlighted the importance of this investment, stating that “we’re turning the tide against the unacceptable housing crisis in this country with the biggest boost to social and affordable housing investment in a generation, delivering on our commitment to get Britain building.”
Beyond new construction, the funding could allow housing associations to buy thousands of homes that have already been built by private developers, but are still empty, simply because they haven’t had the budget to secure them.
Transport upgrades enhancing regional connectivity
As part of its growth mission, the government is boosting transport investment to improve access to jobs, education and services across the UK. This includes £15.6 billion for city regions via the Transport for City Regions settlements, helping local leaders invest in priorities like zero-emission buses and local rail. Areas outside these regions will benefit from a £2.3 billion Local Transport Grant, while London will receive £2.2 billion between 2026-2030 for Transport for London’s capital renewals, the city’s largest multi-year settlement in over a decade.
The government is also backing major infrastructure upgrades, including £3.5 billion for the Transpennine Route, cutting journey times between Manchester and Leeds, and £2.5 billion for East West Rail, supporting housing developments along the Oxford to Cambridge corridor.
Better protection for the homelessness
The Government has confirmed plans to revoke the Vagrancy Act of 1824, an almost 200-year-old law that allows people to be arrested simply for sleeping rough. The repeal, expected within the next year, has been welcomed by campaigners as a more compassionate step toward supporting people experiencing homelessness, shifting the focus from punishment to protection.
Why does this mean for you?
If you’re struggling to get on the property ladder, which is sadly the case for many individuals, the £39 billion housing commitment offers real hope. Guaranteed, long-term funding encourages councils and housing associations to prioritise new developments. Meanwhile, infrastructure investments in transport and energy ensure that these homes are not only built but also connected.
Jade continues: “This announcement is a moment of optimism for the sector, as well as for buyers across the country. We look forward to seeing how this funding will support the expansion of vital schemes such as Shared Ownership, which continues to be a key route onto the property ladder for many. The announcement brings renewed hope that, with the right support, we can begin to close the gap between supply and demand in a meaningful way.”
Want to learn more about the accessible routes to homeownership? Discover our buying schemes hub, where we’ve outlined everything you need to know about affordable home-buying schemes, including Shared Ownership, Deposit Unlock, First Homes, Rent to Buy and more. We’re here to help you find your path to homeownership, because everyone deserves a space to call their own.
For more information on the Spending Review and how the Government plans to support social and affordable housing, visit the GOV.UK website.
