The delivery of affordable housing across England has declined for the first time in several years, with London seeing the sharpest drop, according to new research from estate agency Benham and Reeves.
Despite the government’s pledge to invest an additional £2 billion into social and affordable housing, the number of affordable homes completed in 2023/24 fell by 2.4% compared with the previous year.
This equates to 1,533 fewer homes reaching the market – raising questions over the efficacy of current policy measures amid persistent housing shortages.
A total of 62,289 affordable homes were delivered across England during the period, with the majority falling under shared ownership (20,364 units) and affordable rental schemes (24,155 units). Delivery of affordable homes under the government’s First Homes initiative was significantly lower, with just 614 units completed.
STEEPEST ANNUAL DECLINE
London, while still accounting for the largest volume of affordable homes delivered – 12,611 units – also registered the steepest annual decline, with completions down 20%.
The South West followed with a 15.5% drop, while the South East recorded a 6.3% reduction despite remaining the second most active region for delivery, with 10,619 completions.
The figures underline a growing disparity in regional delivery.
The figures underline a growing disparity in regional delivery. While southern regions appear to be falling behind, several areas in the Midlands and the North have recorded significant gains.
Yorkshire and the Humber led the way with a 25.6% increase in affordable housing delivery year-on-year. The East Midlands saw an 18.8% rise, while the West Midlands reported growth of 12.9%.
STAGNANT WAGE GROWTH
The data comes at a time when demand for affordable homes continues to rise sharply, driven by high interest rates, escalating private rental costs, and stagnant wage growth. With pressure mounting on both local authorities and housing associations, the figures suggest that funding pledges alone may not be sufficient to reverse the downward trend—particularly in areas with high land values and complex planning environments such as the capital.
As the government prepares for the next phase of its Affordable Homes Programme, analysts warn that delivery will need to accelerate rapidly if targets are to be met and housing inequalities addressed across England.
UPHILL BATTLE
Marc von Grundherr, Director of Benham and Reeves, says: “Homebuyers have been contending with the high cost of homeownership for far too long and so it’s reassuring to see the current government not only commit to building more homes, but to boosting the delivery of affordable housing stock.
“Of course, promises and actions are two very different things indeed and it remains to be seen as to whether Labour will actually come good and put in the hard yards required to solve the housing crisis.
“It’s fair to say they face an uphill battle, as those regions with the highest house prices are the ones to have seen the largest slump in affordable housing delivery and this is a trend that needs to be reversed if we’re going to turn the tide.”
