The UK’s renewed effort for affordable housing stems from a clear imbalance between supply and demand. Government data shows that 62,289 affordable homes were built in England during 2023–24, with statistics falling by 39%, highlighting how policy ambitions exceed actual delivery.
The National Planning Policy Framework (NPPF) now requires developments to include affordable housing “to meet identified local needs”, signalling a more robust planning approach. Meanwhile, the UK Government has set a national target to deliver 1.5 million homes by 2029, meaning developers and land promoters face both opportunities and scrutiny.
Data-driven tools like Landstack are becoming essential for effective large-scale delivery.
What Caused the UK’s Affordable Housing Crisis?
The UK’s affordable housing crisis has deep structural roots, shaped by decades of policy shifts, economic pressure, and underinvestment.
According to the National Housing Federation, England faces a housing crisis. There are 8.5 million people unable to access the housing they need. At the same time, Knight Frank’s Affordable Housing Report 2024 reveals that 1.2 million households on social housing waiting lists in England cannot afford private rents or access homeownership.
The ONS notes that in 2024, the median house price in England reached £290,000, which is 7.7 times the median full-time earnings. This affordability ratio has widened sharply since the 1990s, making homeownership increasingly out of reach.
Industry analyses such as Housing Digital cite poorly resourced local authority planning departments and limited land supply as major systemic constraints. Combined with reduced social housing investment and rising construction costs, these pressures have compounded the shortage.
This entrenched imbalance means that even strong delivery years fall short of what’s needed. The crisis isn’t just about quantity; it’s about the right homes, in the right places, at prices people can afford.
How the Government Is Trying to Solve the Affordable Housing Crisis
Over the past two years, the UK Government has sought to bridge this gap through reforms, funding programmes, and planning acceleration.
The DLUHC reports: 62,289 affordable homes delivered (completions) in England in 2023–24 and 43,439 starts on site, a decrease of 39% compared to the previous year. This decline in starts underscores why renewed focus is critical.
In the NPPF (Dec 2024), local plans must ensure that the required mix of affordable housing addresses local needs. This emphasises affordability considerations at the core of every planning decision.
Recent government announcements reinforce delivery ambitions. The DLUHC’s “Turning the Tide” statement pledged to unlock the development of nearly 100,000 homes, with 40% being affordable.
Homes England also reported that 30,087 of the new starts were for affordable homes, representing 79% of all starts in 2024/25.
The combined funding and policy frameworks, including the Affordable Homes Programme and ongoing local plan reform, illustrate a concerted government effort to address the affordable housing crisis, although the scale of need remains daunting.
Affordable Homes Delivery in 2024: Are We Closing the Gap?
Despite these initiatives, delivery remains inconsistent. While completions stay steady, new starts are declining, jeopardising the pipeline of future project homes.
According to the Home Builders Federation, approximately 8,500 affordable homes scheduled for construction are at risk as social housing providers withdraw from taking on Section 106 contracts.
This bottleneck reveals deeper issues in viability and funding. Section 106 continues to be the primary method for delivering affordable homes. The DLUHC reports that 44% of all affordable homes constructed were financed through section 106 (nil grant) agreements.
Projects reliant on cross-subsidy from market units are particularly susceptible to cost inflation and fluctuations in mortgage rates. Developers face the challenge of meeting affordable quotas while maintaining financial viability – a delicate balancing act that often determines whether projects proceed.
Tools like Landstack’s Land Availability Assessment can help identify which authorities are meeting targets and where there are opportunities to improve underperforming areas.
How Local Authorities and Developers Can Help Solve the Affordable Housing Crisis
Local authorities are crucial for delivery, as they convert national policy into practical requirements.
They are responsible for:
- Local plan policy that sets affordable housing targets and tenure mix.
- Section 106 agreements that secure affordable units within market developments.
- Viability testing, ensuring schemes stay practicable while still addressing housing needs.
Affordable housing includes Social Rent, affordable rent, and affordable home ownership tenures. These categories inform how councils negotiate with developers.
However, local authorities face real-world limits; funding, staffing, and legal complexity can slow planning approvals. Strengthening collaboration early in the process is key.
Developers using data platforms such as Landstack’s Districts tool can monitor planning policies in real time, forecast upcoming local plan reviews, and prepare proposals that meet affordability targets before submission.
This proactive approach turns policy into opportunity, saving time, improving outcomes, and building credibility with councils.
Book a demo to explore Landstack’s platform, or call us on 01285 706708 to find out more.