The Ministry of Housing, Communities and Local Government has set out a series of changes across rents, standards, energy efficiency and funding that will shape the social housing sector for the next decade. A few headlines stand out for Liverpool City Region Housing Associations:
Decent Homes Standard updated for the first time since 2006
A new compliance model that focuses on condition rather than component age is welcome, particularly in LCR, which has large volumes of pre-war homes.
The extension of Decent Homes to the private rented sector in 2035 is long overdue.
Minimum Energy Efficiency Standards (MEES)
The MEES Regulations require a minimum energy efficiency standard (MEES) to be met for social rented homes. Under the regulations, homes must:
- Meet EPC C on one metric (fabric, clean heat or smart readiness) by 2030
- Meet EPC C on a second metric by 2039.
Exemptions will apply, including unviable costs. The government has adopted a pragmatic, sector‑influenced approach. While the timescales are still ambitious, the flexibility built into the new model is welcomed and will be essential for ensuring investment delivers meaningful improvements for residents.
New funding and finance
The creation of the National Housing Bank and 0.1% long-term loans could unlock stalled developments. Regional balance will be critical, and it is vital that schemes outside of London are given the priority needed to support housebuilding across the country.
Rent convergence returns
Some rents will be allowed to rise by £1 in 2027/28 and £2 in 2028/29 above CPI+1%. Additional investment capacity will be important for upgrading older stock, but we need to ensure we continue to provide financial support and advice for our residents. In 2024/25, LCRHA’s collectively supported residents to claim over £20 million in unclaimed welfare benefits.
New Social Housing Taskforce
The government announced a new Social Housing Taskforce, which will hold the sector to account on delivering new homes. This is a great opportunity for regions like ours to push for representation and champion the investment needed to regenerate longstanding communities.
In summary
These policies create opportunities but also highlight the need for fair funding distribution and a deep, regionally based understanding of the challenges and opportunities our amazing city region presents.
Liverpool City Region Housing Associations will play a vital role in shaping what comes next.
