Social Housing in 2025: What’s Changed – and What’s Coming Next 

Key social housing updates shaping policy and tenant rights in 2025

We’re now well past the halfway mark of 2025, and it’s already been a busy year for the social housing sector. From record-breaking funding pledges and new planning rules, to a sharper focus on tenant rights and energy efficiency, the pace of reform shows no sign of slowing. However, with new opportunities come new pressures – for local authorities, housing associations, and developers alike.

Here’s our round-up of the key updates so far, and what they could mean for you.

1. Policy framework and major funding announcements

Spending review 2025

In the June 2025 spending review, Chancellor Rachel Reeves announced a £39 billion investment over ten years to support social and affordable housing across the UK — double previous levels. The plan includes:

• £1 billion dedicated for building safety remediation (post-Grenfell),
• £10 billion extra for Homes England to leverage private capital,
• £950 million for temporary accommodation.

However, the question is, will it truly transform housing supply?

Early-stage boost

The March 2025 ‘Plan for Change’ provides an upfront £2 billion injection to deliver up to 18,000 social and affordable homes this Parliament, focused on shovelready sites in cities like Manchester and Liverpool. Midland-based RP’s – keep your eyes peeled!

Planning and Infrastructure Bill

We have already seen the re-introduction of mandatory housing targets under the Labour government, with enforcement powers via central government in the event that targets are missed. The Planning and Infrastructure Bill 2025 introduced further amendments to the planning system designed to drive the required increase in terms of housing numbers. These include:

• The ability for local planning authorities to charge increased planning application fees, but on the basis that those fees are then ring-fenced and used for the determination of the relevant planning application.
• Key focus on streamlining planning decisions:
• Measures including a national scheme of delegation designed to increase the number of planning applications being determined by delegated decision (i.e. rather than planning committee).
• Mandatory training for planning committee members so as to ensure greater consistency in decision making on planning applications (where those applications are dealt with by way of committee).
• A new system of strategic planning through the use of spatial development strategies, aimed at creating a more ‘joined-up’ approach – aligning development needs with infrastructure provision to co-ordinate sustainable growth. Reforms to the CPO procedure, to speed up and simplify the process and timeframe.

We have also recently seen new zoning policies targeting land near transit hubs. The legislation introduces pre-zoned land (especially around transport hubs and brownfield areas), where developers face lighter-touch planning constraints. Local Development Orders (LDOs) are set to expand in use.

Read our blog on how the Planning and Infrastructure Bill will help deliver new towns and communities.

2. Standards and tenant rights

Decent Homes Standard and energy efficiency

On 2 July 2025, the government launched consultations (which close on 10 September 2025) on:

• A reformed Decent Homes Standard (DHS) for social and private rented housing; and
• A minimum energy efficiency standard (MEES) for social and affordable homes.

Proposals include mandatory upgrades on damp/mould, thermal comfort, security, and repair criteria, including:

• EPC rating of C or better by 2030,
• Elimination of damp and mould hazards,
• Improved thermal comfort and basic security,
• Updated minimum repair and condition standards.

Considerations:

• Development agreements and employer’s requirements must integrate these standards now, to futureproof homes.
• Housing providers receiving public funds must demonstrate DHS compliance or face disqualification from grant programmes.
• Construction contracts should include specific performance clauses, remedies for non-compliance, and warranties tied to DHS criteria.

Tenant engagement and sector professionalism

The Regulator of Social Housing will set new competence standards for staff (effective October 2026) and introduce mandatory tenant information access, with phased rollout through 2027. A £1 million innovation fund has also been launched to pilot improvements in resident experience.

Legislative context

The Social Housing (Regulation) Act 2023, which received royal assent on 20 July 2023, grounds much of the regulatory overhaul, strengthening landlord accountability post-Grenfell and Awaab Ishak.

If you’re a social landlord, read our comprehensive guide on Awaab’s Law to ensure you’re ready ahead of the intention of the regulations to come into force on 27 October 2025, or sign up for our free webinar – Awaab’s Law: What it means for housing providers – which is taking place on 20 November 2015.

The Renters’ Rights Bill is currently back to the House of Commons for their consideration of the House of Lords amendments. The Bill makes changes to the law about rented homes, including abolishing fixed term assured tenancies and assured shorthold tenancies; imposing obligations on landlords and others in relation to rented homes and temporary and supported accommodation.

Read our blog on how the landmark Renters Rights Bill is set to transform UK housing legislation.

Sign up for our free webinar on The Renters’ Rights Bill – What It Means for Social Housing Providers, which takes place on 11 September 2025.

3. Challenges ahead

Of course, alongside fresh investment and reform, the sector is still grappling with some significant challenges.

• Skills shortage: A decline in available construction workers is hampering delivery across the country. The government has promised to train up to 120,000 apprentices by 2029, but in the short-term many housing providers are feeling the squeeze.
• Financial pressure on landlords: Rising sector debt, rent caps that limit income, and regulatory demands (like Awaab’s Law) are all creating additional strain. Some councils are even projecting revenue losses of up to £600 million in 2025–26.
• Planning bottlenecks persist: Annual planning approvals remain well below needed levels to meet the 1.5 million home target. While recent reforms aim to speed up delivery, the limited capacity of local authorities may restrict their effectiveness in practice.

4. Expanded CPO powers for councils

One of the most significant legal shifts for 2025 is the expansion of compulsory purchase powers, giving councils more tools to unlock stalled sites and push forward regeneration projects.

Legislative changes from the Levelling Up and Regeneration Act 2023 and 2025 amendments make land acquisition easier, including:

• Enhanced compulsory purchase order (CPO) powers for regeneration,
• Introduction of ‘hope value’ caps to limit compensation where public interest is proven.

Landowners resisting CPOs must obtain independent valuation advice and specialist legal representation, particularly where ‘hope value’ caps reduce compensation.

5. Enhanced tenant and resident engagement laws

2025 has also seen a step change in how tenants and residents are involved in decision-making, with new laws requiring housing providers to put engagement at the heart of regeneration and development projects. Under the Social Housing (Regulation) Act 2023, regulators now require:

• Clear tenant engagement in development and regeneration projects,
• Resident feedback in Section 105 consultations (Housing Act 1985),
• Registration of social landlords with performance metrics tied to build quality.

This enhances the importance of:

• Equality impact assessments (EQIAs),
• Governance structures to reflect tenant voice,
• Consultation frameworks for estate regeneration.

Together, these changes place tenant voice firmly at the centre of housing delivery, making meaningful engagement a legal, as well as a moral, obligation for landlords and developers.

How we can help

2025 marks a pivotal shift in how social housing is legally defined, built, and monitored. For local authorities, housing associations, and private developers, a proactive, compliance-led legal strategy is essential to avoid project delays, funding loss, or future litigation.

As the pace of change accelerates, those who stay ahead of the curve — by embedding compliance, strengthening governance, and engaging meaningfully with residents — will be best placed to seize the opportunities of 2025 and beyond. Our team can help you get there.

Get in touch with us to ensure that your contracts and projects evolve in line with the latest regulations.