The government has announced a package of new funding and financial flexibilities to accelerate the delivery of social and affordable homes, alongside plans to modernise the Decent Homes Standard (DHS) for the first time in 20 years.

The measures, unveiled by Housing Secretary Steve Reed, are designed to help councils, housing associations and other providers ramp up building and reduce record levels of families and children in temporary accommodation and on waiting lists.

£39bn programme set to open for bids next month

The announcement comes ahead of a £39 billion bidding window opening next month for the Social and Affordable Homes Programme (SAHP). The government says the programme will deliver around 300,000 social and affordable homes over its lifetime, and that the latest changes are intended to ensure funding is used effectively to accelerate housebuilding at scale.

More flexibility for councils and housing providers

Key changes include:

• Reduced administrative barriers for council housebuilding, with councils able to build up to 1,000 new homes without having to open a new Housing Revenue Account (HRA), removing costs associated with setting one up and running it.
• Action to unlock stalled homes delivered through Section 106 agreements, including a time-limited “emergency” approach allowing the tenure of uncontracted Section 106 homes to be varied where no affordable housing provider is willing to buy.
• A commitment to work with councils, providers and developers on a broader framework to reset and expand the Section 106 market, simplify the process, and strengthen providers’ capacity to purchase these homes.

Modernised Decent Homes Standard: bathrooms remain central

Alongside the building programme, the government has published its response to a modernised Decent Homes Standard (DHS). This is particularly significant for the bathroom sector.

The response confirms:

• Bathrooms remain “core facilities” within the standard.
• Under the repair criteria, bathrooms will be upgraded to “key components”.
• The DHS will move away from an age-based test to a condition-based test. In practice, that means bathrooms will be assessed based on whether they are in poor condition or broken, not simply on age.

The government also says landlords will need to meet more robust expectations for homes to be free from disrepair and damp, and to be warm and energy-efficient.

Concern over delayed enforcement

However, the government has indicated the modernised DHS won’t be enforced until 2035. That timeline has already prompted strong criticism from renters’ groups and some Labour MPs.

Organisations including Generation Rent, Shelter and the Renters’ Reform Coalition argue the lack of urgency risks prolonging tenants’ exposure to damp, mould, disrepair and other hazards, with serious health consequences. They also say renters were promised faster action, and are pushing for a 2030 deadline instead.

Energy efficiency upgrades from 2030

Separately, the government says that from 2030, social landlords will be required to upgrade homes to meet new energy efficiency standards. Potential measures mentioned include improving insulation, installing solar panels and fitting modern heating systems such as heat pumps to make homes warmer and reduce energy costs for tenants.