Reflecting on 2025: a year of reform, reset and rising expectations

At the same time, the Renters’ Rights Act became law. The abolition of Section 21, new renter protections and strengthened enforcement powers together represent the most significant overhaul of the private rented sector in a generation.

Collectively, these reforms elevate expectations of what decent, safe, affordable housing must be: not a policy aspiration, but a lived reality for residents. But they also raise big questions about the resources needed for implementation.

A strong Spending Review – and a new political direction

The summer Spending Review delivered one of the strongest housing packages in recent years, with long-term investment in new supply, building safety and green homes.

It also laid the foundations for the new Social and Affordable Homes Programme, which opens for bids in February 2026 – a critical opportunity to scale up the delivery of genuinely affordable homes.

Mid-year, ministerial changes brought a sharper, visible shift in tone: “build, baby, build”. The new secretary of state sharpened the focus on supply, signalling an intention to accelerate planning reform and unblock stalled development across England.

But ambition alone won’t deliver homes. The sector has been operating in difficult market conditions throughout 2025.

Housebuilding in England fell to its lowest level in nine years, with only around 208,000 homes completed in the year to March 2025 – a six per cent drop on the previous year – and planning approvals hit a 40-year low.

With more than 40 per cent of new affordable homes typically delivered through Section 106 agreements, the slowdown in private development has already restricted affordable supply.

At the same time, high development costs, persistent inflation and a cautious approach to interest rates have weakened viability, as the regulator’s latest Sector Risk Profile highlighted.

Some providers have already stepped back from open market sale to protect financial stability – illustrating the squeeze between maintaining investment in existing homes and delivering new ones at scale.

Progress made – but major decisions still outstanding

Despite significant progress in the overall housing landscape, several critical decisions remain unresolved. The Autumn Budget brought less clarity than expected, leaving the sector still waiting for:

• Rent convergence, a crucial decision for both tenant affordability and long-term business planning
• An updated Decent Homes Standard, vital for driving consistency, investment and quality across the social sector
• Minimum energy efficiency standards, essential given rising energy bills, net zero commitments and growing climate-resilience risks
• Proper recognition of the revenue costs of tackling homelessness and of the rising numbers in temporary accommodation
• The long-term housing strategy. Its absence leaves a strategic gap at a time of rising homelessness, constrained supply and increasing pressures on local authorities

These delays matter. Without clarity, 2026 risks beginning with uncertainty just as regulatory expectations tighten, homelessness rises and climate-related risks – from overheating to flooding – intensify.

Professionalism elevated: the Competence and Conduct Standard

The year also marked a step change in expectations of practice and accountability. Confirmation that the Competence and Conduct Standard will apply from October 2026 signalled a new era of professionalism.

The standard places ethics, behaviours, skills and resident respect at the centre of housing practice.

Its implementation will require sustained investment in workforce capability, organisational culture and leadership – reinforcing that safe, high-quality homes depend as much on people and culture as they do on policy and capital investment.

Looking ahead

2026 is shaping up to be a defining year as multiple reforms move from design to delivery. To turn reform into real-world impact, the sector will need to prioritise:

• Resident-centred safety and quality, ensuring compliance leads to meaningful improvement
• Affordability and clarity about rents, particularly following the rent convergence decision
• Sustainable delivery, maximising opportunities in the new housing programme
• Professionalism and culture change, embedding the Competence and Conduct Standard across the workforce
• Resilience and concern for staff well-being, essential as workloads and pressures increase
• Homelessness prevention, requiring co-ordinated action, investment in local authority capacity and renewed focus on prevention, in a context of very tight resources
• Net zero and climate resilience, ensuring homes are energy-efficient, affordable to heat and safe in a warming climate

To conclude, 2025 will be remembered as a turning point: the year long-promised reforms materialised, investment returned to centre stage, and accountability to tenants was placed firmly at the heart of housing policy.

But 2026 will be an implementation test – when outstanding decisions must be made, and when new duties and investment must translate into safer, warmer, more affordable and more climate-resilient homes.

The Chartered Institute of Housing stands ready to work with our members and partners to help shape and respond to what it brings.

Rachael Williamson, director of policy, communications and external affairs, Chartered Institute of Housing