Autumn Budget 2025

On 26 November 2025, the Chancellor Rachel Reeves shared her Autumn Budget, updating the nation on the state of the public finances and the government’s spending and taxation plans.

In response, Kate Henderson, Chief Executive of the National Housing Federation, said:

“Today’s budget contains welcome steps to tackle the cost-of-living crisis, with removal of the two-child benefit cap - which we have long been calling for – set to lift thousands of families out of poverty.

“We had expected the government to announce how rent convergence, which equalises historical differences in rents over time, will be reintroduced. This policy is both fair for tenants and vital in ensuring the social housing sector has enough income to maintain existing homes and build new ones.

"However, this decision has now been delayed. We look forward to hearing the government’s decision on this in January, which will enable housing associations to put in strong bids for funding through the Social and Affordable Homes Programme and deliver on the government’s housebuilding ambitions.

“It’s positive to see an additional £1.5bn to tackle fuel poverty through the Warm Homes Plan and we look forward to seeing the detail on this. However, it is disappointing not to see any funding announced for supported housing, with many schemes closing across the country due to years of cuts and rising costs. We will work with the government to protect this vital resource.

"Housing associations remain committed to delivering a decade of renewal for social and affordable housing."

Previous budgets

Spending review 2025

Spring Statement 2025

Response

Autumn Budget and Spending Review 2024

Submission

Spring Budget 2024

Autumn Budget 2025 Member Briefing

This briefing summarises the announcements in the Autumn Budget most relevant to housing associations and the NHF’s response to each.

Members can download the briefing below.

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What we asked the Chancellor to include in the Autumn Budget 2025:

Introduce rent convergence with a £3 per week uplift from 2026, ensuring social rents remain fair and affordable for residents., relative to local income. This measure would generate £3.35bn rental income that would unlock capacity for £8bn in private borrowing. Modelling suggests this could enable the sector to build an additional 51,000 homes over 10 years.
Save our supported housing by committing to emergency funding to prevent further scheme closures, working towards a sustainable funding solution for supported housing and making homes for older persons and disabled people more accessible.
Exempt housing associations from the Economic Crime Levy or create a specific category for the sector.
Tax reform to speed up development and invest in the quality of existing homes. Zero-rating VAT on building safety works could save social landlords £633m to deliver over 12,000 new homes. Extending the zero-rating of VAT on Energy Saving Materials until 2030 will help housing associations invest in both decarbonisation and new home delivery.
Confirm funding for the Warm Homes Plan to decarbonise homes and improve the health and wellbeing of residents. A further £3.7bn is needed for the Warm Homes: Social Housing Fund, along with further support for heat networks.
Increase investment in existing homes through targeted grant funding to support housing associations and local authorities improve the quality of existing homes and meet new regulatory requirements.
Reforming welfare to support residents on the lowest incomes, by uprating local housing allowance, abolishing the two-child benefit cap and removing the household benefit cap.

Read our submission

Who to speak to

Adam Gravely, Policy Officer

adam.gravely@housing.org.uk