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Andy Burnham's Council Housebuilding Plan Examined

Financial Times Companies •
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Andy Burnham wants the “biggest council housebuilding programme since the postwar period” and proposes pivoting the government’s existing £39bn housing budget entirely to council homes. He has not defined the postwar benchmark; in the 1950s councils built just under 190,000 homes a year, peaking at 191,000 in 1968, yet last year English authorities delivered only 10,500 affordable homes.

Capacity is a major hurdle. Councils have not built at scale for decades, the Right to Buy policy erased more than 2 million units, and only 162 of 317 English councils now own or build housing. Experts say housing associations must stay involved.

The term “council house” implies social rents (~50 % of market), which are costlier than the current “affordable” rents (up to 80 %). Shifting the £39bn programme to social rent would raise costs 20‑25 % to roughly £48bn, or cut 60‑75 k homes. Meanwhile housing benefit hit £38bn in 2025‑26 and temporary accommodation costs have surged.

Advisers suggest extra borrowing via a National Housing Bank, but much of the £39bn is already committed by Homes England and the programme is back‑loaded past 2029. Even within Burnham’s team there is disagreement over how much can be delivered solely by councils.

Source: Financial Times Companies · Summarized by HeadlinesBriefing