G15 doubles number of new social rent homes built in a year

The number of new social rent homes delivered by G15 members has more than doubled in a year, new data has revealed.

Completions of the most affordable socially rented homes jumped by 107% in the last financial year, compared to the year before. Almost 700 new social rent homes were completed by G15 members, up from 335 the year before.

This positive news is backed-up by a 38% jump in the number of new homes for social rent starting construction over the last year, with 1,445 homes getting under way in 2021/22 (1,050 in 2020/21).

Altogether, the leading not-for-profit housing associations that make up the G15, increased completions of new homes by 4.3% compared to the year before to 11,527 new homes. This saw a 5% increase in the proportion of homes completed that were for affordable rented tenures to 7,924 homes. 69% of all homes completed were affordable homes, with 43% of all affordable homes completed being for affordable rented tenures. Homes for sale on the open market are built to partly fund the construction of new affordable homes.

Construction of over 10,605 new homes began in the last year, more than 8 in 10 of which were affordable homes. However, the continued effects of the post-pandemic recovery, supply chain challenges, and shortages of labour, saw new starts in total decrease by around 3.1% overall when compared to the year before.

The first quarter of the new year (2022/23) has started strongly, with more than double the number of homes completing compared to the same period last year (3,332 in Q1 2020/21; 1,675 in Q1 2021/22). New starts are also up over 90% on year before for the first quarter of this year (1,549 in Q1 2022/23; 813 in Q1 2021/22).

Geeta Nanda OBE, G15 Chair and Chief Executive of MTVH, commented:

“Alongside the approximately £900m G15 members have invested in existing homes over the last year, these strong new home delivery figures are very welcome. Despite the significant challenges facing not-for-profit housing associations seeking to build much needed new affordable homes, by working with government, the Mayor of London, Homes England, and local authorities, we are continuing to make a massive contribution to tackling the housing crisis.

“We know there is a dire need for more of the most affordable homes for rent – socially rented homes. That’s why it is great to see the number of homes for social rent being delivered more than double. Those nearly 700 new social rent homes, along with all the 11,527 new homes we completed last year – nearly 70% of which were affordable homes, will help to give people the foundations they need to live well.

“With inflation driving up the costs of materials, labour, and services, we do need to work with our partners to consider creative options to keep building the new affordable homes that are so needed. Part of this must include considering whether fixed grant rates are sustainable in the current climate, and working with government to look at the core funding being invested into affordable home delivery in this country.”

Deputy Mayor of London for Housing & Residential Development, Tom Copley said:

“These impressive new figures show that London is once again building social rented homes at scale.

“The Mayor has made it a priority to get more social rented homes built in the capital after supply of these most affordable homes had dwindled to almost nothing when he took office. Work was started on more than 10,000 City Hall-backed social rent level homes across London last year, up from just three in 2016.

“London’s housing sector has shown it can deliver and we now need Ministers to back the capital with the additional investment to carry on building at the scale Londoners need despite the headwinds generated by Brexit, the pandemic and high inflation.”

The G15 updates new home starts and handovers on a quarterly basis here.

Find all the latest new home building figures here