England's councils built 10,480 affordable homes—but face steep hurdles ahead

Councils in England delivered 10,480 affordable homes in 2024-25, making up 16% of all new affordable housing completions. They have the land and political commitment to build more but face financial and skills shortages that slow progress. The Social and Affordable Homes Programme (SAHP) launched in 2025 with a £39bn commitment, the largest investment in social and affordable housing in decades. At least 60% of the homes under this programme will be for social rent.

Despite this funding, 44% of councils struggle with financial pressures tied to Housing Revenue Account limits. These constraints reduce their ability to deliver new homes. To turn the £39bn into actual council housing, authorities must strengthen their Housing Revenue Accounts, invest in long-term skills and capacity, and build strong partnerships.

Effective collaboration with the private sector and housing associations is vital. Councils bring unique advantages, such as land and local knowledge, while private partners contribute expertise. These partnerships help close the skills gap and upskill development teams to meet delivery targets. The SAHP offers a chance to rebuild councils’ ability to construct homes, not just fund schemes through grants. Strengthening finances, investing in skills, and fostering partnerships will determine how quickly and effectively new affordable housing is built.