Gareth Belsham, director of Bloom Building Consultancy, commented:

“The Chancellor has made a subtle but important change to the rules relating to the way Homes England is funded. And while this shift has so far generated fewer headlines than her flagship announcement of £39bn for social and affordable housing, it matters.

“The Chancellor wants to unlock a further £10bn for Homes England, and her announcement revealed that much of this funding will need to come from the private sector.

“The idea of social housing as a private investment class – offering reliable, Government-supported returns – could be a compelling one for investors and developers looking for an investment shielded from the conventional property price cycle.

“While the announcement is in part a way to insulate the Government from criticism that it is ‘spending now to pay later’, it’s also an acknowledgement that all forms of funding will be to required if it is to have any hope of hitting its target of getting 1.5 million new homes built in England during this Parliament.”