CWAG Newsletter – November 2026
This update includes the following:

Budget 2026: Implications for social housing
Whilst overall, the 2026 Budget was notable for being relatively low key, there were a number of housing-related measures. A summary of key announcements is set out below.
Additional funding for affordable and council housing
The Chancellor announced a further £1.5 billion investment in council and affordable housing, increasing planned government spending on the sector to more than £40 billion. The funding is intended to accelerate housebuilding and support the delivery of new affordable homes across the country. However, housing organisations continue to raise concerns that much of the additional funding will not be available until later in the programme, limiting its immediate impact and contributing to delays in bringing new developments forward.
Support for first-time buyers: “Your First Home”
The Budget confirmed £4.7 billion of funding for the new Your First Home scheme, designed to help around 70,000 first-time buyers in England access home ownership. The scheme will offer a 20% government equity loan, require deposits of just 2.5%, and provide a five-year interest-free period on the government loan. Applications are expected to open in early 2027.
The initiative is intended to support both first time buyers and the housebuilding sector by boosting demand for new-build homes. Similar to the previous Help to Buy programme, it will be available only on eligible new-build properties purchased from participating developers. However, in response to concerns that Help to Buy did not always target those most in need, the Government has introduced regional property price caps to focus support on modestly priced homes and better reflect local housing market conditions across England.
Continued focus on social housebuilding
The Budget reaffirmed the government’s commitment to building more social housing, presenting it as part of its longer-term growth and public services agenda.
The Budget introduced a major VAT reform allowing land sales to registered social housing providers to be zero-rated from April 2027, with the explicit aim of reducing barriers to affordable housing delivery and removing reliance on the complex “golden brick” workaround.
Rough sleeping and homelessness funding
The government announced an additional £432 million for measures to end rough sleeping, bringing total new investment in this area to £874 million. This has implications for homelessness services, supported housing and prevention activity.
Cost of living Measures
The Budget also included a significant effort to address cost of living issues which although not directly related to housing will impact the sector’s residents.
- A £100 one-off payment to 20 million households in council tax bands A to D to help with rising energy bills from January 2027.
- Removal of standing charges from household gas bills, shifting fixed costs onto the unit rate, which is expected to save 60% of households an average of £45 a year.
- Maintenance of the current VAT cut on electricity bills to July 2027, with a planned revert to 5% on 31 March 2027.
No uplift to Local Housing Allowance (LHA)
One of the most notable omissions was that the Chancellor did not unfreeze Local Housing Allowance rates. Housing and homelessness organisations had called for an increase because private rents have risen significantly since the rates were last updated. Concerns remain that the gap between housing benefit support and market rents will continue to place pressure on low-income households and local authority homelessness services.

Update on Local Government Reorganisation and Devolution
The Government’s programme of local government reorganisation (LGR) continues to develop following a review announced in September 2026, which paused a number of decisions and withdrew previous proposals covering Essex, Suffolk, Norfolk, Hampshire and the Isle of Wight.
On 29 October, the Ministry of Housing, Communities and Local Government (MHCLG) confirmed its ongoing commitment to delivering the LGR programme across England. The Government stated that, subject to a short period for further representations, it is minded to proceed with reorganisation proposals in Gloucestershire, Oxfordshire, Warwickshire, Worcestershire, and East Sussex with Brighton & Hove.
The remaining 15 areas within the LGR programme, including the nine areas where decisions were paused or withdrawn, remain under consideration, with final announcements expected in early 2027.
To provide certainty for local authorities and residents, local elections scheduled for May 2027 are expected to proceed on existing council boundaries while decisions are finalised. The current timetable envisages shadow elections for new unitary authorities taking place in May 2028, with new councils assuming full powers from April 2029.
These reforms sit alongside the Government’s wider devolution agenda, which envisages mayoral strategic authorities operating alongside larger unitary councils. The direction of travel is towards more strategic decision-making across wider economic areas, particularly in relation to housing, regeneration, infrastructure and economic growth.
The recent Budget reinforced this trend, signalling that an increasing proportion of government investment and funding flexibility will be directed through mayoral authorities. Larger devolved budgets, enhanced borrowing powers and greater control over housing, transport and growth funding are expected to strengthen the role of mayoral strategic authorities as key commissioning and investment bodies in their regions.
Reform of the Shared Ownership Model
In a recent Parliamentary Statement, Housing Minister Matthew Pennycook announced a two-phase programme of reforms aimed at improving the shared ownership model and strengthening protections for shared owners.
The first phase of reforms includes raising the household income eligibility thresholds for shared ownership, increasing scrutiny of fees and service charges, and introducing enhanced data collection and reporting requirements.
New schemes funded through the Social and Affordable Homes Programme (SAHP) will be expected to place greater emphasis on long-term affordability for residents. Providers will also be required to ensure that fees charged to shared owners are not used to generate profit or cross-subsidise other areas of their business.
The Minister also confirmed that a second phase of reforms will consider some of the most significant challenges experienced by shared owners. Areas under review include barriers to staircasing, the fairness of nomination periods and provider fees, the potential introduction of buyback or leasehold repurchase options, and improvements to the information, guidance and support available to existing shared owners.
Update on the Social Housing Bill
The Social Housing Bill was introduced into the House of Lords in May 2026 and has now progressed to the Commons. The Government has tabled a package of amendments at Commons Committee Stage. The changes focus on protecting social housing stock, strengthening tenant protections, and supporting homelessness prevention.
Key Changes Proposed
Protecting Social Housing Stock
- Extends the notification period for disposals of social housing outside the regulated sector from 4 weeks to 8 weeks.
- Requires registered providers to notify a wider range of local authorities about proposed disposals.
- Increases the information provided to councils and other providers to support potential acquisitions.
- Introduces a Right to Buy rural self-designation
Strengthening Tenant Protection
- Enhances protections for social tenants experiencing domestic abuse.
- Helps survivors retain tenancy security when moving to escape abuse.
- Clarifies landlords’ responsibilities when tenancy changes are required as a result of domestic abuse.
- Right to Manage reforms
Tackling Homelessness and Reducing Bureaucracy
- A new duty that specified bodies must identify actual or possible homelessness alongside a general duty to act.
- Repeal of obsolete / unworkable legacy provisions from earlier housing legislation.
Building Safety (Remediation of Unsafe Cladding etc) Bill
On 4th November 2026 the government published the Building Safety (Remediation of Unsafe Cladding etc) Bill, introducing significant new measures to accelerate the remediation of unsafe cladding and strengthen accountability for building safety. The legislation aims to address ongoing delays in remediation nearly a decade after the Grenfell Tower Tragedy, ensuring that unsafe residential buildings are identified and made safe more quickly.
Key proposals include a new legal duty on those responsible for residential buildings over 11 metres in height to assess and remediate life-critical external wall fire safety risks, backed by stronger enforcement powers, financial penalties and potential criminal sanctions for persistent non-compliance. The Bill will also establish a national register of medium-rise residential buildings, require standardised fire risk assessments, improve transparency of building ownership, and make it easier to pursue construction product manufacturers for the costs of unsafe products.
The legislation also introduces a new “Remediation Backstop”, allowing public authorities to step in and carry out remediation work where responsible parties fail to act, helping to ensure that no affected building is left without a route to remediation.
Overall, the Bill is intended to speed up remediation, improve resident protection, and reinforce the principle that those responsible for building safety failures should pay to put them right.
Outcome of Social Housing Right to Manage Review
MHCLG has published the outcome of a review of Social Housing Right to Manage which included consideration of issues relating to the ALMO model.
The key findings in respect of ALMOs are:
‘The evidence suggested that ALMOs were working effectively, with good performance, governance and outcomes for tenants. Most managed a wide range of housing services, and ALMOs and councils were generally clear about their responsibilities.
All ALMOs had formal agreements in place. Governance arrangements were viewed as adequate by 9 in 10 ALMOs and 6 in 10 local authorities. Lower scores were mainly due to reviews following the introduction of the consumer regulatory reforms in 2024. ALMOs described strong approaches to tenant engagement, complaints handling and staff concerns. Confidence in financial arrangements was high, with all but one ALMO reporting fit-for-purpose audit systems.
The call for evidence did not identify a need for significant reform to the current ALMO framework. Housemark analysis commissioned by the National Federation of ALMOs has found that ALMOs achieve higher than average overall satisfaction in the Tenant Satisfaction Measures’.
Right to Manage and TMOs
The review signals a significant overhaul of the Right to Manage framework, with a stronger emphasis on governance, building safety, accountability and landlord oversight, while seeking to preserve TMOs as a vehicle for resident empowerment and local control of housing services.
Other Publications
Regulator of Social Housing: 2026 Risk Profile
The central message of the Sector Risk Profile 2026 is that social landlords must deliver “more and better social homes” while facing higher expectations on safety, quality and energy efficiency, all within a difficult financial environment and operating environment characterised by complex interlocking risks.
Although the regulator’s economic standards apply primarily to housing associations, the report stresses that local authority landlords should apply the same governance, risk management and assurance lessons to their Housing Revenue Accounts and landlord functions. Success will depend on strong governance, robust data, effective risk management and clear strategic choices about investment priorities.
Do you live in a stock? Stop Social Housing Stigma
This report published by the Stop Housing Stigma campaign examines the part that language and terminology used in the sector plays in generating stigma. Changing language will not resolve social housing stigma on its own, but sectoral rethinking of what language is used can play an important part.
Foundation to Thrive: How to Unlock a Council Housing Revolution – Shelter
This report sets out key reforms to reverse the long-term decline of council owned social housing. Whilst recognising recent positive action by government, including increased grant funding, reduced Right to Buy discounts, a long-term rent settlement and a renewed focus on social rent, the report argues that that current measures alone will not deliver the homes needed to end the housing crisis. It recommends major reforms to funding, land acquisition and delivery powers, alongside a national council housing mission to deliver a renewed council housing programme at scale.













