Following the publication of the Phase 2 report from the Grenfell Inquiry, the Government must address a critical oversight: the exclusion of social rented homes from the Building Safety Fund.
This decision jeopardises the safety of social rent residents and forces not-for-profit housing associations to divert focus and funds from building much-needed new homes, into the essential work of ensuring existing homes are safe.
While safety has to come first, this needn’t be a zero-sum choice.
The Building Safety Fund was established in response to the Grenfell tragedy, as a means for Government to accelerate much-needed works on homes across the country. For reasons never entirely clear, it has only ever been accessible to private, for-profit developers, leaving not-for-profit housing associations and their social and affordable housing residents without any financial assistance.
Years of inconsistent Government policies have pushed housing associations to their limits. Funding cuts, escalating costs, and inadequate rent regulations have eroded financial stability.
Faced with the monumental task of ensuring safety without access to the Building Safety Fund, scaling back on new developments has been the only option for many of us. In the ultimate irony, the safety fund remains underspent, at exactly the moment when demand for more safe, affordable housing in London and the country has never been greater.
The inclusion of social housing in the Building Safety Fund and the ability for not-for-profit housing associations to access this is an essential step that the Government must take to address the country’s housing challenges. This is not about seeking handouts; it’s about ensuring safety measures are applied equitably and that existing resources are allocated fairly.
London’s diverse communities are its lifeblood, and they can only thrive if secure, affordable housing is available. Every pound spent on affordable housing does more than create homes - it creates opportunities, contributing to a more inclusive, sustainable, and prosperous city. The same is true across the country.
The Government has rightly set ambitious targets for much-needed new homes, including social and affordable homes for those that can’t afford full rents. This has been accompanied by positive noises around rent certainty, helping give the housing associations that provide many of these homes, the clarity and confidence to raise private capital in support.
The millions currently underspent in the Building Safety Fund could also make a significant difference, enabling housing associations to continue making safety improvements for their residents, without having to divert capital from building the affordable homes the country so desperately needs.
It is a fair, common-sense tweak that will result in safer homes and more homes for those that need them the most.
* Paul Hackett is Chief Executive of Southern Housing and a member of the G15 group, which represents London’s leading not-for-profit housing associations.
