Andy Burnham has outlined plans for a large-scale council housebuilding programme in his first major speech in Manchester, targeting what he described as Britain’s housing crisis.
The proposal centres on what Burnham characterised as the largest council housebuilding initiative since the post-war period, aimed at reducing reliance on the private rental sector. However, details on funding mechanisms have not yet been disclosed.
Housing supply and demand
Burnham stated that Britain has lost approximately 1.5 million council homes since the 1980s, with a similar number of people currently on housing waiting lists. He argued that attempts to control housing costs through Local Housing Allowance freezes result in homelessness and create unfunded pressures on councils for temporary accommodation.
“Britain’s housing crisis is having a ruinous impact on its public finances,” Burnham said, pledging to utilise vacant public land to reduce construction costs. The programme would be delivered through devolved regions and local leaders rather than central government departments.
The plans also include higher density residential development in town centres, intended to increase high street footfall whilst protecting green space from development.
Industry response
Nathan Emerson, Chief Executive of Propertymark, welcomed housing-focused policy but emphasised the need for continued investment across social housing, private ownership, and the private rented sector to meet the government’s target of 1.5 million affordable and sustainable homes in England by 2029.
Heather Powell, a Partner at Blick Rothenberg, raised questions about funding sources and whether the homes would be protected from Right to Buy schemes, which historically have not resulted in reinvestment of proceeds into replacement housing stock.
Vanessa Hale, Chief Executive of Real Estate:UK, highlighted the sector’s role in delivering growth but noted that success requires addressing the viability crisis that has stalled building activity across the country, alongside adequate resourcing for local and regional authorities.
Paul Rickard, Chief Executive of Pocket Living, supported the devolution approach and place-first growth strategy, but stressed the need to deliver homes for key workers and young professionals alongside council housing, with SMEs playing a role in local housing delivery.
Fiscal considerations
Olly Cheng, Financial Planning Divisional Lead at Rathbones, noted that whilst the speech demonstrated ambition, markets would scrutinise how the plans could be funded within existing fiscal constraints. He highlighted that public finances remain tight with limited headroom for additional spending.
Cheng added that the choice of chancellor would be as important as the prime minister in shaping fiscal policy and market confidence, with taxation implications remaining a central concern for investors.
The proposals form part of a broader agenda spanning decentralisation, business rates relief, and regional economic development, though implementation details and costings remain to be clarified.
