Massive Investment into Housing and Infrastructure – Where Are the New Opportunities for Your Business?

NFRC is generally encouraged by the government’s increased commitment to the UK’s infrastructure and housing programmes although there are some up-front changes that could raise operating costs. Higher wages, especially for apprentices, should help address staff shortages as entry level jobs become more attractive.   

This article will cover all the new opportunities present within the autumn Budget 2024 announcements that could help your business and which we expect to inject significant cash into the sector.  

Housing Opportunities: 

Housing got a big boost in the budget. The government’s total investment into housing supply has increased to a total of £5 billion next year.  

This includes an additional £500 million for the Affordable Homes Programme, pushing that budget to £3.1 billion, the highest it has been in over a decade. This is expected to increase further in the spring spending review next year.  

Local authorities are expected to save over £1 billion by the end of the decade from reductions in Right to Buy discounts and also being allowed to retain all proceeds from social housing sales. This money will likely be reinvested into each authorities social housing programme.  

There is an additional £3 billion ringfenced for SMEs and the build-to-rent sector. This will be available through housing guarantee schemes, which already offer developers access to lower-cost loans.  

The Cladding Safety Scheme and Building Safety Fund will have over £1 billion in funding for cladding remediation in 2025-6. More details will emerge later in autumn about this funding. 

There is an additional £233 million of spending for tackling homelessness in 2025-26, taking that total to £1 billion. This will go towards preventing more families living in temporary accommodation and should provide construction opportunities.  

£56 million is being invested in the delivery of over 2,000 homes at Liverpool Central Docks.  

Another £46 million is being put towards £28,000 homes that would otherwise have stalled because of nutrient neutrality requirements. 

£25 million will go towards delivering 3,000 new energy-efficient homes in a new joint venture. They intend for 100% of these to be affordable.  

The government is also developing plans to make the Mortgage Guarantee Scheme permanently available to support lending at 95 percent loan to value. This would allow more people to enter the property market, which should drive retrofit and new build opportunities.  

The government has guaranteed £3.4 billion to “kick-start” the government’s Warm Home Plans to decarbonise homes. More details about this funding will be revealed in next year’s spending review but £1 billion is expected to support more energy-efficient heat.  

Infrastructure Opportunities: 

The Budget has delivered £1.4 billion for the school rebuilding programme, a £550 million boost from last year. This funding will go towards the major rebuilding and refurbishment of the school and sixth-form college buildings across England. A list of confirmed projects is available here. https://www.gov.uk/government/publications/school-rebuilding-programme-schools-in-the-programme 

There has been a £2.3 billion boost to prison building to ensure thousands more prison places are available by 2026. An additional £220 million has been set aside for prison maintenance for 2024-5, with up to £300 million available the following year.  

For the NHS, £1 billion of health capital investment has been made available next year “to address the backlog of repairs and upgrades,” Chancellor Rachel Reeves said. The new short-term focus is on rebuilding seven hospitals affected by the RAAC crisis. The Budget has committed to continuing the major hospital programme, but no longer aims to deliver 40 hospitals by 2030. The full list of hospitals most affected by RAAC can be seen here. https://buildingbetterhealthcare.com/the-seven-nhs-hospitals-most-affected-by-raac 

A dedicated fund to upgrade 200 GP surgeries across England, which will include some new development, will soon be established.  

Other Announcements: 

The devolved governments will receive an additional £6.6 billion through the operation of the Barnett formula in 2025-26. There is £3.4 billion for the Scottish Government, £1.7 billion for the Welsh Government and £1.5 billion for Northern Ireland. Part of this will go towards investment into schools, housing, health and social care, and transport, which will open opportunities for NFRC Members. 

An additional £300 million has been announced for further education, which includes £40 million to transform the Apprenticeship Levy. This is a positive start that will hopefully kickstart a much-needed transformation of the training sector and eventually address the skills shortage so many roofing and cladding firms are facing. NFRC hopes the new Skills England institution will meaningfully follow through on intentions to work collaboratively with STEM employers and sector bodies to increase the number of T-Level industry placements. As we await more details on Skills England, NFRC is working to ensure the nuances of training for roofing and cladding are considered. 

Labour has allocated funding for 300 new planning officers in local authorities across the UK, but NFRC fears this will not be enough. Without additional change, our Members should expect delays during the planning and approval processes to continue.