Chancellor John Healey has pledged an extra £1.5 billion for the social and affordable homes programme in his first Budget on 28 October 2026, taking total government backing for council housing to more than £40 billion over ten years. Industry reporting put the additional funding at enough for 10,000 new social and affordable homes in England, with funding prioritised for social rent, especially council homes. The announcement was aimed at one of the most persistent pressures in British housing: too few homes at rents that lower-income households can afford.

Brownfield rules eased to speed building

Healey also announced that biodiversity requirements will be removed for more brownfield sites, and for small housing developments on previously developed land. Under current planning rules, builders must meet a 10% biodiversity net gain on brownfield sites to gain approval. Healey told MPs: “To get more homes built, I'm drawing the line on constant changes to building regulations.” He added that there would be no major changes to building regulations in this Parliament, except where critical for safety.

Why delivery will be the test

The funding and rule changes will only matter if homes are actually built, and at the pace the programme promises. Developers have previously pointed to building regulations and rising construction costs as drags on housebuilding, so the Budget tries to address both cost and process. Critics and industry voices will now watch whether planning decisions quicken, whether councils use the cheaper borrowing and VAT-free land measures also announced, and whether the new homes reach the social-rent tenants most in need.

Sources: Reuters and The Intermediary.