What the June 2025 Spending Review Means for Finance Leaders in Housing

The Chancellor’s June 2025 Spending Review delivered some of the most significant funding commitments the housing sector has seen in a decade. With £39 billion allocated to the Affordable Homes Programme (AHP), a 10-year rent settlement, and new funding streams for Homes England, there is optimism across the sector. We’ve been talking to Housing Association (HA) finance leaders about what the practical implications are for finance teams, and their hiring plans. 

June Spending Review: Key Highlights

• £39bn investment in the Affordable Homes Programme to support new builds and upgrades.
• A 10-year rent settlement, providing long-term revenue predictability for HAs.
• Rent convergence consultation aimed at addressing inconsistencies in rents for similar properties.
• A boost in funds for Homes England to drive private investment.
• Funding for temporary accommodation and a commitment to end hotel use for asylum seekers by 2029.

 
Implications of the Spending Review for Finance Teams

1.    They can regain the ability to plan for the long term

The 10-year rent settlement is an opportunity for HAs to be confident in their income forecasts. Finance leaders can now revisit long-range business plans, secure borrowing on more favourable terms and commit to strategic investments that were previously seen as too risky. 

Greater stability also enables more effective planning for capital programmes, repairs, maintenance and decarbonisation commitments. Secure revenue predictions mean finance teams can allocate resources to strategic priorities. As some of our contacts have commented, they are now able to make decisions that have impact beyond the short-term funding cycles that have constrained them in recent years.

2.    They can unlock the potential for new developments

With a substantial increase in the AHP budget, HAs of all sizes can start to explore new development projects. For finance teams, this means bringing in people with the skills to evaluate the viability of schemes, understand grant conditions, and ensure internal financial controls and governance structures are in place. 

Some HAs we’ve spoken to have talked about options to diversify income through mixed-tenure and shared ownership, however there was caution here; financial resilience is a huge priority, and new opportunities will have to be balanced with operational capacity.

3.    A mixed response to rent structures

The rent convergence consultation could reshape rent-setting practices across the sector. Aligning rents for similar properties sounds very fair in principle, but the financial implications will vary. Some HAs could see an uplift in revenue, while others might need to bring higher rents down. 

Some of our senior finance contacts are planning to test scenarios for different convergence models. Their objective is to assess the potential impact on income, especially in areas where local affordability constraints already limit rent flexibility. This could be an issue for some HAs going forward.

4.    Funding pressures are not going anywhere

While the headline AHP funding is welcome, the underlying cost pressures faced by finance leaders in HAs remain. The post-Grenfell regulatory environment, EPC targets for decarbonisation and ever-increasing demand for the delivery of safe, warm, dry homes means significant capital investment is still required. 

Finance teams will still have to manage competing priorities including the funding of new developments while upgrading and retrofitting existing stock. Grant funding may help, but it won’t cover all costs. Long-term financial sustainability depends on managing regulatory compliance, growth and meeting the needs of residents – a tricky balancing act.

One of our Finance contacts said

Whilst we are extremely pleased with the commitment shown to housing in the June Spending Review, there is a lot to do with that investment. Greater stability is always welcome, and we’re hopeful that over the next ten years, confidence in the market will continue to rise.

The Outlook for Hiring 

Many finance leaders we spoke to felt that this increase in confidence will filter through to the hiring market. As new developments come online, there will be a need for project finance capabilities, cash flow modelling expertise, and long-term capital planning. For some, this will mean expanding the finance function and recruiting finance and accounting people with the skills to deliver these projects. 

Our contacts predicted an uptick in requirements for interim support to provide proven expertise for specific projects or deadlines to minimise risk and manage their long-term commitments. And some felt that over the next few years, they would also need to boost the permanent workforce to deliver investment plans.

How We Can Help

We work closely with finance teams across the housing sector, helping to overcome hiring challenges and support with interim and permanent hires - from Project Accountants to CFOs. We have a network of interims with HA experience and great feedback from previous assignments.

If you need finance and accountancy skills for your HA finance department, contact Catherine Hegarty for a discussion and see how we can help build your team.