Sector reacts as MHCLG announces new social housing taskforce and changes to section 106 and HRAs

The sector has been reacting this morning after the government made a series of announcements aimed at accelerating affordable housing delivery.

The Ministry of Housing, Communities and Local Government (MHCLG) earlier today said it plans to set up a new social housing taskforce, made up of key players from the sector to “hold the sector to account on delivery”.

MHCLG said it will agree a “compact” with the social housing sector, urging all providers to come forward with ambitious pledges to ramp up housing supply.

It announced it will publish details of “emergency measures” to get the section 106 market moving again, allowing the tenure of uncontracted section 106 homes to be varied where no affordable housing provider is willing to buy.

The department confirmed housing associations will be able to use loans from a £2.5bn loan fund at 0.1% interest - a move which means the government has adopted an ‘amortised grant’ funding model first drawn up by Housing Today and the G15 group of housing associations.

MHCLG also pledged measures to help council housing financing. It said it has increased the threshold over which local authorities must maintain a Housing Revenue Account - a ringfenced account for income and spending on councils’ own housing stock – from 200 to 1,000 homes.

It said it would extend the discounted borrowing rate for council housebuilding from the government’s lending facility, the Public Works Loan Board.

Details on social housing rent convergence are expected to be outlined in a ministerial statement later today.

MHCLG has also said it will publish more details on the Decent Homes Standard and Minimum Energy Efficiency Standards.

Fiona Fletcher-Smith, group chief executive of L&Q, said, “The government’s package of measures shows it is serious about delivering a decade of renewal in social housing.

“A safe, decent and affordable home is the foundation for a better life, yet too many families are still living in overcrowded or unsuitable conditions.”

Kate Henderson, chief executive of National Housing Federation, said she would welcome clarity on Decent Homes Standard and energy efficiency targets.

She said: “We’re also delighted that today marks the launch of a new social housing taskforce, through which we will agree a compact to strengthen our long-term partnership with the government, local councils, and social housing residents.

“These announcements give our sector the confidence to deliver on our shared ambition of a generational boost to social housing.”

Gavin Smart, chief executive at the Chartered Institute of Housing (CIH), said: “CIH welcomes today’s announcement of new funding and regulatory certainty for social and affordable housing, building on the 2025 Spending Review and supporting the delivery of more high-quality, affordable homes.”