"The announcement today by the Chancellor that the social housing budget will be cut by over 50% will have a significant impact on the supply of affordable homes in the short term. Whilst raising rent levels will potentially plug the gap of reduced grant levels, some Registered Providers will choose not to develop new homes in the absence of grants. Those that are keen to develop will have to find new ways of raising finance, new partnerships and ways of operating. Whilst this offers an opportunity for the sector, it will take a while for it to adapt and in the short term we will see a shortfall in supply. With the private housing market far from fully recovered and in the absence of a clear planning policy, the housing market in the UK will be depressed for the foreseeable future. On the upside it is encouraging to see the increased commitment to building 600 new schools and refurbishing existing schools across the UK."
