Affordable Housing: Autumn 2026 Update – Breathing Space for the Sector?

The much anticipated autumn Budget was delivered on 28 October in Parliament, and whilst some of the proposals put forward by the government where in line with previous announcements (see our article here), there were some surprises for the housing sector. The government has stated that it is prioritising housing investment to support families across the country to thrive.

Below is a summary of the key proposals in relation to housing;

• First Time Buyer ISA – to support people saving for a deposit, there will be a new First Time Buyer ISA from April 2029. Savings of up to £4,000 a year can be added to the account, with the government topping up savings with a 25% bonus. Funds can be withdrawn for a qualifying first home purchase, on properties up to a value of £450,000. There will also be a reduced withdrawal charge on the current Lifetime ISA scheme to allow account holders to withdraw funds for property purchases above the £450,000 price cap
• Your First Home scheme – £4.7 billion has been allocated for the previously discussed Your First Home equity-loan scheme for first-time-buyers. It is anticipated that the scheme will go live next spring, with applications opening in December 2026. There will be income caps for people intending to use the scheme and price caps on qualifying new build properties, which will vary depending on the location. The scheme will be delivered by Homes England
• Biodiversity – the government will introduce an exemption from Biodiversity Net Gain requirements for residential brownfield developments on sites up to 1.5 hectares. A full government response will be published in due course
• Building Regulations – in order to create certainty in the sector, the government has announced it will not make any major changes to building regulations for the remainder of this Parliament, except to continue improving building safety
• Social and Affordable Housing Programme – the government intends to provide a further £1.5 billion to deliver 10,000 homes across England, with a focus on Social Rent. The total investment in the Social and Affordable Housing Programme is now more than £40 billion over the last 10 years
• Focus on council building – there is a real focus in the Budget on council housebuilding. The government confirmed that preferential borrowing rates for councils through the Public Works Loan Board will continue for a further year, mayors will be given a greater role for making decisions about housing and public services in their areas and VAT relief will be introduced on land sold to registered social housing providers, all with the aim of expediting the construction of social housing. It is also worth noting that the VAT relief is likely to reduce the need for ‘Golden Brick’ arrangements in affordable housing transactions. For Registered Providers, this could be a positive development, reducing some of the complexity and administrative burden associated with Golden Brick deals, as well as removing potential transactional hurdles and delays to help streamline the acquisition process and support the faster delivery of affordable housing
• Supported housing licensing scheme – the government is introducing a licensing regime in 2027-28 to enforce national standards for supported housing in England
• Release of MOD land for housing – the budget commits to releasing defence land for housing, supported by a partnership between the MOD and Homes England, a new Defence Housing Service and changes to the Crichel Down rules expected for spring 2027. This may create opportunities for affordable housing partnerships and land-led development

How can Tozers help?

We are monitoring the government’s housing announcements and will keep clients updated as further details emerge and the proposals develop. If you are a developer, registered provider or local authority and would like to understand how the proposed changes could affect your housing projects, land transactions or development plans, our specialist team can provide practical legal advice to help you navigate the opportunities and challenges ahead.

We will share further commentary as more information becomes available.

Contact our legal experts