In the four years, he has led the Coreus team to deliver residential projects for numerous housing associations and developers including Legal & General Affordable, Akkeron, LiveWest, Bromford, Alliance, Goram Homes, Plymouth Energy Community, POBL, Brighter Places and many more.

These projects have all been aimed at providing high-quality, well-designed, truly affordable, warm and safe homes. The schemes have been designed utilising an inclusive, customer or resident-centric approach to enable the residents to build a better future. The creation of these homes is facing challenges.

However, the number of homes that we have been able to complete with our clients to provide to customers has reduced over the last couple of years with our clients facing the following key challenges that have impeded their effectiveness and progress in addressing the housing crisis.

1. Insufficient Supply:

One of the most prominent challenges faced is the limited availability of housing units. Rapid population growth and limited land availability contribute to the ongoing shortage. As a result, the demand for affordable homes far outweighs the supply, leaving many in desperate need of housing.

 

2. Funding Constraints:

Housing Associations heavily rely on government grants, subsidies, and fundraising efforts to sustain their operations. However, insufficient funding due to rising construction costs and budget cuts have significantly hampered their ability to develop and maintain affordable housing projects. This financial strain limits their capacity to expand and meet the growing demand for affordable homes.

 

3. Regulatory Barriers:

The industry regulations, bureaucracy, and planning processes, particularly resource pressures in this process, often slow down the development of affordable housing projects. Lengthy approval procedures, stringent building codes, and local opposition to new construction contribute to delays and inflated costs. Such regulatory hurdles restrict the ability of Affordable Housing Associations to deliver homes in a timely and cost-effective manner.

The challenges faced, coupled with the escalating housing crisis, demand transformative reforms to ensure their long-term viability and impact. Here’s why change is necessary:

 

  • Meeting Growing Demand: With an increasing population and persistent housing shortage, the Government must expand their efforts to help Housing Associations to meet the growing demand for affordable homes.

 

  • Enhancing Efficiency: Embracing innovation, and leveraging technology can help streamline operations, reduce costs, and increase the pace of housing delivery.

 

  • Public Perception: Engaging with communities, dispelling myths about affordable housing, and showcasing the positive impacts of well-planned developments can help overcome resistance and gain public support.

 

  • Sustainable Communities: By prioritising social integration, community amenities, and environmental sustainability, Housing Associations can create neighbourhoods that enhance residents’ quality of life and well-being.

 

  • Diversifying Funding Sources: Exploring alternative funding models, such as public-private partnerships, social impact investing, and community land trusts, can reduce reliance on government funding and enhance financial stability.

Early July saw Sir Keir Starmer’s Labour government sweep to power having promised to “back the builders, not the blockers”. The new regime has been quick off the mark, with some early, high-profile announcements. However, The Autumn Budget 2024 introduces several measures impacting the residential property sector, notably adjustments to Stamp Duty Land Tax (SDLT) and modest funding increases for affordable housing. However, these changes appear more fiscally driven, aimed at addressing the “£22 billion black hole” in public finances, rather than tackling the underlying, longstanding challenges of the housing market.

The government’s target to build 1.5 million homes over the next five years is ambitious, but familiar obstacles persist. Past targets have fallen short due to planning delays and local resistance, and the budget’s additional £500 million for affordable housing, though a positive step, is unlikely to resolve the considerable backlog. With over a million people on social housing waiting lists, more substantial investment would be required to have widespread impact.

Addressing these targets demands planning reform to overcome persistent barriers such as delays, regulatory complexities, and local opposition. While the budget pledges more resources for planning authorities, faster progress would require streamlining approvals and easing regulatory burdens. Transparent, national guidelines balancing local and national housing needs could support this, but without meaningful planning reforms, achieving new housing targets will remain difficult.

Our service delivery in the affordable housing sector has now extended to London and our Regional Director, Chris Sanders recently attended a round table and remarked “the UK government’s target to build 1.5 million homes a year, the equivalent of 300,000 new homes, by 2029 is at odds with the Greater London Authority’s (GLA) decision to cut its Affordable Housing Programme (AHP) budget for 2024-25. The GLA has reduced its annual budget from £703m to £347m, citing rising costs, rising costs and management challenges. The reduction appears to undermine the UK’s ambition to tackle the housing crisis.

The alignment between the GLA and the government provides an opportunity to modify priorities and resources. A stronger government commitment to funding affordable housing and ensuring a streamlined, supportive planning system is essential. It’s clear that meaningful changes are required to ensure affordable housing supply meets the growing demand.”

At Coreus, we are committed to building a better future and will continue to work with our clients to remove the blockers and support them in delivering high quality, well designed, truly affordable, warm and safe homes across the UK.