Affordable Housing Crisis Deepens as 700 Developments Stall

Thousands of new Affordable Homes across England may stand empty in the coming year as more than 700 developments face delays or suspension. The Home Builders Federation (HBF) has warned that funding shortfalls from social housing providers are preventing completed homes from being occupied, threatening both housing supply and small builders’ viability.

Under Section 106 agreements, developers are required to include a proportion of affordable housing within each new project. These homes are typically purchased by registered housing associations at below-market value to provide social or shared ownership accommodation.

However, the HBF’s analysis reveals that many social housing providers currently lack the financial capacity to purchase these properties, leaving around 900 completed Affordable Homes unoccupied. Without these transactions, developers are forced to slow construction or halt projects entirely, tying up capital and straining their finances.

The situation is especially difficult for small and medium-sized developers who rely on steady project completions to maintain cash flow. With sites stalled, these builders face rising costs and reduced ability to fund future developments. The HBF estimates that roughly 100,000 private units are also currently stalled, signalling broader challenges for housing delivery.

HBF Chief Executive Neil Jefferson said: “Against rising affordability pressures and increasing numbers of families living in temporary accommodation, it cannot be that Affordable Homes are left standing empty. While recent government housing announcements are a step forward, immediate financial constraints are preventing affordable housing from being delivered.”