Labour has a new leader. The country has a new Prime Minister. And with that comes new policies, promises, and plans. But what will this mean for the social housing sector, local authorities, and the communities they serve? And can Andy Burnham really solve the UK housing crisis? Senior leaders from around LHC Procurement Group (LHCPG) offer their opinions.

Burnham has promised ‘the biggest council house building-programme since the post-war period’, suggesting a sharp rise in construction rates compared to recent years. He has also said he will build more homes that people can afford, addressing housing shortages, long waiting lists, and affordability issues affecting the whole of the UK.

Burnham’s plans also include renovation, regeneration, and retrofit matching his housebuilding ambitions with a commitment to upgrading existing old and draughty stock.

However, bigger plans mean more funding. Delivering more housing requires significant long-term investment from the Government, both to fund new developments and provide the infrastructure, skills, and services needed to support growing communities.

Whilst exact details of Burnham’s growth plans remain unclear recent reports, ahead of October's budget, suggest the newly appointed Chancellor John Healey is considering plans to borrow up to £9 billion a year to fund infrastructure, housing, and regional investment projects.

Burnham's previous statements have also suggested using the 10-year, £39 billion Social and Affordable Homes Programme (SAHP) to solely fund social rent or deliver the funding pot directly to local authorities to drive the house building push. 

Angela Rayner, who has been reappointed Housing Secretary, was credited with securing the SAHP programme in her previous tenure, along with wider funding measures. Will there now be alternative funding methods as she returns to post?

“While the ambition to accelerate housebuilding is welcome, the challenge will be ensuring there is sufficient funding available to make it happen at scale.” comments Jennifer Castle, LHCPG’s Chief Commercial Officer.

“Increasing housing delivery requires sustained investment. This could prove challenging if Burnham remains committed to operating within the Government’s existing debt and spending rules.”

Toppling targets

Despite the Government’s 2024 targets to build 1.5 million new homes in England by 2029, just under 400,000 have been built so far.[i] In 2025, just 2,000 of those were new council homes.

Rayner has stated that she will keep the 1.5 million target but has also acknowledged that it has been increasingly harder to meet.

To hit the Government’s targets, new build construction needs to accelerate to 370,000 each year across the next three years. This would match the rate of post-war England, which saw 300,000 new builds per year by the 1950s; more than half of those were built by local authorities.

While increasing the overall housing supply is essential, delivering a higher proportion of genuinely affordable and social rented homes will be vital to reducing waiting lists and ensuring those most in need have access to safe and comfortable accommodation.

Director of Communities at LHCPG, George Stevens, noted, “Burnham has promised to build ‘good homes for all’. This suggests that the accelerated builds would go beyond helping just meet housing targets, but would also create long term social value for communities, local areas, and the people within them. 

"Implementing social value by design, in partnership, is one way to ensure new build construction delivers strong, meaningful social impact alongside safe, sustainable, and high-quality homes where local communities can thrive. LHCPG’s construction frameworks support this by embedding relevant and proportionate social value priorities, intended to be delivered through every awarded project. 

We also appoint contractors from across the supply chain, with a strong emphasis on local businesses, helping the public sector deliver maximum social value from every pound spent ensuring a legacy continues long after the build.” 

Delivery through devolution

So how could Burnham’s devolutionary approach unlock housing delivery? In the lead-up to his tenure, Burnham made a five-point pledge, which includes ‘to be a leader for the whole of the UK’ and to ‘decentralise Whitehall’.

He plans to unite the country in a common cause whilst devolving Government from Westminster, giving power back to regions around the country. By giving mayors and regional leaders greater control over housing investment, land use, planning, and regeneration he suggests that decisions can be made for the good of the communities they affect, better reflecting local needs and market conditions, and not relying on a ‘one-size-fits-all’ national approach.

Devolution is hoped to give greater influence over affordable housing funding helping to direct investment where it is needed most. However, this would also mean councils would need to construct tens of thousands of new homes a year.

For Northern Procurement Alliance (NPA) Regional Director, Faye Whiteoak, the topic is particularly important. “The devolution of power presents a significant opportunity to accelerate housebuilding, not only in the North of England, but across the whole of the country. Power back in the hands of local leaders means greater control over planning and priorities, faster decision making, and an assurance that final results directly benefit the local people.

“Crucially, procurement should mean stronger partnership with local authorities and mayoral combined authorities. These institutions are central to the strategy’s devolution agenda and will help to close productivity and inclusion gaps in line with national ambitions.”    

Jennifer Castle continues, “When procurement, particularly in respect to housing, is integrated with transport, skills, and regeneration programmes, it enhances place-based outcomes, connecting residents to employment, education, and opportunities.

“As a business, we are expertly placed with a pre-existing, regional approach meaning that our regional businesses can not only access local supply chains and SMEs, but are directly placed to understand the needs of their communities, creating solutions that adapt and meet to those needs. All of that while being backed by national technical and procurement specialists, and 60 years of knowledge and expertise.”

Faster, smarter housing delivery

Local authorities need to form robust and clear routes to delivery, identifying the right procurement solutions that support building at pace and scale, as well as retrofit and regeneration programmes.

Procurement frameworks such as LHCPG’s Housing, Regeneration and Demolition (H3), Modern Methods of Construction New Homes (NH3), and Retrofit and Decarbonisation (N9) can play a vital role in accelerating the development and regeneration of new homes providing fast, compliant, and comprehensive access to specialist suppliers.

By connecting clients with experienced providers and contractors, these frameworks help reduce procurement delays, create greater certainty around delivery, and support the development of high-quality, sustainable homes.

LHCPG’s Director of Product Innovation, Graham Collie, said “If devolved authorities are to take on greater responsibility for housing growth and renovation, then frameworks will become even more crucial to help unlock the capacity, expertise, and collaboration needed to accelerate housebuilding at pace and scale.

“As greater powers are devolved to regional authorities, there is a real opportunity to align housing investment with local priorities and accelerate the delivery of new homes where they are needed most. By reducing procurement timescales, encouraging innovation, and supporting long-term partnerships, these frameworks can play a critical role in turning housing ambitions into tangible outcomes for communities across the country.”

Jennifer Castle concludes, “At a time when the UK housing crisis is crying out for a solution, Burnham’s promises do offer some hope to the very many people across the country who find themselves in the middle of that crisis, either through temporary accommodation, overcrowding or affordability.

“The pledges look promising and it will be interesting to see how his plans manifest over the coming months. The key question will be the balance of fiscal responsibility with the level of investment needed to tackle the housing shortage and meet ambitious delivery targets. Whatever the outcome, the landscape will be an interesting watch over the coming months.” 

To learn more about how LHC Procurement Group can support your housing projects, talk to our expert, regionally based teams.  

https://www.lhcprocure.org.uk/our-regions/