Published: 17 June 2025
In the recent Spending Review, the government reaffirmed its commitment to tackling the housing crisis. At Leeds Building Society, we’ve been calling for a bold, long-term plan to address the issues faced across the country for some time.
Whilst we welcome the direction of travel, we believe the speed of progress must match the scale of ambition. Solving the housing crisis means building many more affordable homes to rent and buy, and making sure our housing stock is fit for a low-carbon future.
So, how might the key Spending Review announcements affect our members?
Housing
£39bn of funding for the Affordable Homes Programme
Housing supply was a key focus, with the Chancellor allocating £39bn of funding for the Affordable Homes Programme over the next decade.
The inclusion of both social rent and shared ownership within it is encouraging news for households across the country, particularly renters and first-time buyers who continue to face significant affordability barriers. Our research shows that shared ownership is forecast to be more affordable than private renting in 93% of local authorities after 10 years.1
£4.8bn for Homes England
The plan to allocate a further £4.8 billion to Homes England to invest in projects is also promising. Giving it greater financial firepower to support development could attract private investment and accelerate the delivery of new homes, which is essential if the government is serious about meeting demand. A more dynamic housing market benefits everyone, from current homeowners to those striving to get onto the property ladder.
The environment
As a mutual lender, we’re committed to supporting sustainable, long-term homeownership. That means helping members live in homes that are not only affordable, but also future-proofed.
£13.2bn for the Warm Homes Plan
As part of the Spending Review, the government confirmed that the Warm Homes Plan will receive the full £13.2bn promised in the Labour Party’s manifesto. The plan will fund vital home energy efficiency projects, including insulation and heat pump installation.
This is welcome news for many members and marks an essential step on the journey to Net Zero. Greener homes are not only better for the planet, they’re also cheaper to run, a key consideration as energy costs remain a concern for many.
Savings
No update on Cash ISAs…yet
It’s worth noting that the Spending Review didn’t contain any major tax changes. These are usually reserved for the Budget, which will be held in autumn.
Whilst there’s been plenty of talk about potential changes to ISA rules, no announcements were made on that front. Consultations on any potential changes to ISAs are due to begin in the coming weeks and we’ll be keeping a very close eye on any developments. As ever, we’ll continue campaigning against any changes that could disadvantage our members.
The Spending Review is a delicate balancing act between long-term goals and immediate constraints. Whilst the Spending Review didn’t introduce direct change for savers, its effects may be felt indirectly. For homeowners, renters and landlords, the measures around housing supply and energy efficiency could have a more immediate and clear impact.
At a time when only 1 in 10 people under 44 can afford to buy their first home, this announcement lays important groundwork for change.2
Richard Fearon, CEO of Leeds Building Society, said:
“We welcome the government’s bold and long-term commitment to tackling the housing crisis outlined in today’s Spending Review. The investment into the Affordable Homes Programme, including the commitment to social rent, alongside plans to accelerate delivery and improve energy efficiency, is good news for renters, first-time buyers and homeowners across the country.
It’s a thoughtful plan that won’t solve every issue overnight, but it’s a strong step forward and we’re ready to work with the government and support our members to help bring it to life.”
1Taking the longer view: shared ownership, costs and opportunities - an independent assessment
2Saving the British Dream: Investing in First Time Buyers for Economic Renewal, Public First
