NHF sets out asks for government ahead of Autumn Budget

“Due to current significant financial and regulatory pressure and uncertainty, many housing associations are reducing their development programmes and their expenditure on Section 106 homes,” the NHF said.

Alongside the rent settlement, with annual increases capped at the Consumer Price Index + 1% over the 10 years, the body called for a “fair and consistent” approach to rent convergence for those homes below formula rent.

It has called for a rapid boost to the AHP, extending the current programme by one year, with a “shift towards social rent, and greater flexibilities around grant rates and regeneration”.

The NHF has recommended a new long-term AHP from 2026 for social rent and shared ownership, with “minimum funding” of £4.6bn per year on average for the first parliament, on a minimum five-year rolling basis.

In terms of investment in existing homes, it is calling for equal access to the Building Safety Fund and Cladding Safety Scheme for social landlords. 

It asks that the government underwrite buildings insurance risk for properties with safety defects, remove VAT from building safety works, extend and expand the relief on energy saving materials and review VAT for all refurbishment works.

It also wants the government to work with the sector to develop building safety, decency and decarbonisation funding into a new long-term, £2bn-per-year “social housing investment fund”.

Last month, the government announced that it had renamed the Social Housing Decarbonisation Fund (SHDF) the Warm Homes: Social Housing Fund and that applications would open shortly.

The NHF has recommended that Wave 3 be rolled out quickly, with a funding boost, and that the government should develop a new round of the Energy Company Obligation and review social housing’s access to it.

On providers’ role in public services, it said supported housing “helps half a million people in the community and is a vital part of a sustainable housing, health and social care system”.

“Supported and older persons’ housing relieves pressure on a range of public services and will be essential if we are to build an NHS fit for the future,” it said.

The NHF has recommended that the government provide “emergency revenue funding” for housing-related support to local authorities in “financial crisis”, roll over support contracts for one year, and extend and uplift the Rough-Sleeping Initiative and Homelessness Prevention Grant.

It said this would “ensure vital homelessness and supported housing services” can continue to operate.

The NHF said, if taken on, the recommendations outlined in the submission would create the conditions for housing associations to “help deliver the biggest increase in affordable housebuilding in a generation”.

They would enable associations to “progress our shared priorities through investment in existing homes to make them safe, green and high quality” and “play a critical role in supporting public services to rebuild”.

The NFH said housing associations were “anchor institutions in their communities”, with a “track record of collaborative delivery in every part of the country”.

“Housing associations already build a quarter of new homes and drive growth, improve the energy efficiency of 50,000 homes annually and aid a variety of public services through supported and older persons’ housing provision.

“For every £1 of public grant, housing associations unlock £4 of private investment.

“They also save residents £9bn every year compared with if they were living in the private rented sector and save the government £6bn annually through reduced welfare spending,” it said.

Cris McGuinness, chief financial officer of Riverside, said: “We remain hopeful that this new government will commit to investing in social housing in next month’s Budget so it can deliver on its manifesto pledge of overseeing the biggest increase in social and affordable housebuilding in a generation.

“We would also urge the chancellor to commit to supporting removing cladding on high-rise buildings by allowing housing associations equal access to the Building Safety Fund and the Cladding Safety Scheme, so that our social housing residents across the country who currently live in cladded buildings can feel safe and secure in their homes.

“We recognise that this new government has many pressing issues and challenges, but access to high-quality, safe and secure housing remains an important pillar of our society and is crucial for the well-being of future generations.”

A spokesperson for the Ministry of Housing, Communities and Local Government said: “This government will deliver the biggest increase in social and affordable housing in a generation. 

“We are committed to working with housebuilders, local authorities and registered providers on this and we will set out more details this autumn.”