Government confirms equal access to building safety funding for social landlords

Social housing providers will be given equal access to government funding to remediate their blocks, in another win for the sector.

The spending review document confirms £1bn of investment between 2026/27 to 2029/30 to accelerate remediation, ‘by giving social housing providers equal access to government funding as private building owners.”

The document said: “This will support providers of social housing to supply more affordable homes, while also improving the living conditions of tenants.”

The £5.1bn Building Safety Fund, which provides grants for remediation work on buildings over 18 metres tall, has not in most circumstances been open to social landlords. Social landlords have only been eligible where costs would otherwise be passed on to leaseholders or they threaten the landlord’s financial viability.

Social landlords, particularly in London, have warned building safety costs are constraining their balance sheet capacity, with G15 members forecasting a spend on £3.6bn between 2021 and 2036.

>>See also: Reeves to announce £39bn Affordable Homes Programme and 10-year rent settlement

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Paul Hackett, chief executive of Southern told Housing Today this morning said equal access to the funding would be a “game-changer”.

He added: “Extending access to building safety funding for social and affordable rented homes is a game changer for housing associations. Not only will this accelerate remediation of blocks it will also free up capacity to invest in new affordable homes. This combined with the reintroduction of rent convergence will help to address the EBITDA-MRI cash interest cover constraint facing housing associations such as Southern Housing.”

Ian McDermott, chief executive of Peabody, said: “Equal access to the Building Safety Fund is excellent news and will make a real difference in London”

Daisy Armstrong, chair of the G15 residents’ group said: ”“We are delighted that the Government listened to residents and fixed a fundamental unfairness it inherited where the Building Safety Fund was mostly accessible for private developers and leaseholders, but not available for social renters living in housing association properties.” 

Housing Today and G15’s State of the Capital report earlier this year called for equal social landlord access to building safety funding.

The announcement comes alongside confirmation of a £39 billion, 10-year Affordable Homes Programme, a 10-year CPI plus 1% rent settlement and a consultation on rent convergence.

>>Spending review 2025: All our coverage in one place

Chancellor Rachel Reeves also announced” an additional 10 billion pounds for financial investments, including to be delivered through homes England, to crowd in private investment, and unlock, hundreds of 1000s more homes”

The spending review also confirmed £2.5bn in low-interest loans for housing providers “to further boost their capacity to invest in new development.”