The impact of the Spring Statement 2025 on housebuilding sector

With a focus on its Plan for Change, the government has announced several changes in the Spring Statement that will impact the future of housebuilding in the UK.

In order to get Britain building, the government has allocated £625m to be spent on existing construction schemes over the next four years. This comes as the Office for Budget Responsibility (OBR) said that a lack of construction workers may harm efforts to meet housebuilding targets.

To increase social and affordable housing for 2026-27, an additional £2 billion has been issued to help meet the government’s ambitious target of 1.5 million homes in the next five years. This has been further supported by reforms in the Planning and Infrastructure Bill.

Mandatory housing targets for councils have also seen a move towards making it easier to build on green belt land. With green belt boundaries up for review, councils will be ordered to identify lower-quality “grey belt” land for housebuilding purposes.

These reforms will bring around economic changes, and are expected to boost the UK economy by 0.2% by 2029/2030 – which is around £6.8bn. And an increase of 0.4% by 2035. However, the OBR has said that the government may fall short of its initial housebuilding target, with 1.3 million homes projected, 200,000 short of its target.

Let us take a look at the announcements in more detail, and explore what we think about them.

A £2 billion investment to support social and affordable housebuilding

Following news from the Spring Statement at the end of March, the sector will receive a £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes. And according to Shelter, 1.3 million households are on social housing waitlists – so this influx of homes is long awaited.

Hayley Hayes, Head of Specification at Polypipe Building Products, shared: “The government’s £2 billion investment is essential to encourage the creation of new social and affordable housing. Delivering 18,000 new homes is a positive step towards the overall 1.5 million target, but we must ensure they are also built to a high standard. Good-quality, well-designed homes improve people’s lives, and sustainability must be at the heart of this expansion.

“As energy costs continue to rise, it is vital that new homes incorporate low-carbon heating technologies, such as heat pumps and heat recovery systems. These solutions will help reduce carbon emissions while keeping bills low for residents, particularly those in social housing. By prioritising energy efficiency, we can future-proof homes and provide long-term affordability for families.

 

“Housing associations play a crucial role in delivering sustainable, cost-effective homes, and we are committed to supporting them with the right infrastructure. Smart drainage, water management, and ventilation systems are just as essential in ensuring these homes are resilient, comfortable, and environmentally responsible.”

Land to be unlocked at Network Rail and MoD sites for housebuilding

Much of the discussion from the sector in the drive to build new homes has been around the availability of suitable land for housebuilding. Network Rail is one of the biggest landowners in Britain, managing 124,000 acres, however, much of it has no plans to be used for rail infrastructure. In recognition of this, the Chancellor announced plans to free up more land to meet its 1.5 million targets over the next five years.

The second announcement within the week was that 40,000 homes are set to be built on land currently owned by Network Rail and the MoD, in Newcastle, Cambridge, Manchester, and Nottingham. This puts previously unused land to good use. The identified areas are also spread across the UK contributing to multiple region’s targets.

Commenting on the announcement, Chris Smith, Head of New Build at Polypipe Building Products, shared:

“The move to unlock surplus land at Network Rail and MoD sites is a welcome step towards tackling the housing crisis and meeting the government’s goals. These locations are often already supported by existing utilities and travel infrastructure, making their development easier than other isolated areas.

 

“However, in the drive to deliver on government targets, it’s vital that sustainability is at the heart of these developments. Future-proofing new homes with the latest technology, such as low-carbon heating and water management solutions, will ensure they stand the test of time. We’re committed to supporting the industry in delivering high-quality, sustainable housing that meets the needs of both today’s homeowners and future generations. We look forward to seeing these new sites come to fruition in the near future.”

Support for the next generation of construction workers

The government has also said that a £625 million investment to train up to 60,000 more skilled construction workers will be delivered. And this is in the hope of reaching the target of 1.5 million homes in the next five years.

The construction sector faces a huge shortage of skilled workers. The CTIB estimates more than 250,000 new people are needed in the sector before 2028. The BACH says 73,700 new plumbers are needed in the UK by 2032, with many in the industry nearing retirement age, while apprenticeship drop-out rates remain high.

Welcoming the Plan for Change, which will support the next generation of plumbing and heating installers as well as other trades, Dean Asher – Head of Technical Sales at Polypipe Building Products shared:

“This investment in skills and training in the construction sector is essential to help us meet imminent housebuilding targets. It’s important to have a strong pipeline of talent to support the future growth of the sector.

 

“Reaching these ambitious goals requires collaboration between businesses and government. By working together, we can help create real, positive change in the built environment and make the sector an attractive place for new talent to thrive. It’s an exciting time to join the sector and help shape the future quality of our homes.

 

“Our work with apprentices and in colleges across the country is also going some way to ensuring the future of the sector is strong, and also sustainable. We’re on the search for enthusiastic ambassadors to join us and fly the flag for Polypipe Building Products.”

Want to know more about how Polypipe Building Products is supporting young people entering the industry? Find out more here.

The Spring Statement and Rachel Reeves’ planning reforms will certainly see an influx of new homes being built over the next few years. And thanks to added funding, it will also open up more construction, plumbing and heating installer-based roles for those looking to move into the industry.

But it will have to be a collective effort from manufacturers like Polypipe Building Products, housebuilders and local authorities to create long-lasting, sustainable solutions to support future UK homes.