The Budget presents some clear opportunities for housing associations, developers bringing smaller brownfield sites back into use, and those building homes for first-time buyers. But who are the real winners from Burnham’s first Budget?
Housing Associations
For housing associations, the combination of additional affordable housing investment and changes to the tax treatment of land will be welcome. A £1.5 billion uplift to the Social and Affordable Homes Programme is intended to support around 10,000 additional homes. Funding will be allocated between 2027–28 and 2030–31.
This funding prioritises Social Rent, particularly council homes. Housing associations now have an opportunity to bring forward proposals and delivery partnerships that respond to that ambition,
However, the more direct benefit is the introduction of zero-rated VAT on land sold to qualifying registered housing providers from April 2027. This could significantly improve development economics. Alongside additional funding, it gives housing associations a stronger incentive to invest and deliver.
Smaller brownfield developers
For smaller brownfield developers, the proposed exemption from Biodiversity Net Gain requirements is potentially significant. Residential brownfield sites of up to 1.5 hectares will qualify, although the implementation timetable is still to be confirmed.
On constrained sites, removing this requirement could reduce both costs and complexity. That may make a meaningful difference to a marginal site. The commitment to avoid major changes to building regulations for the rest of the Parliament, apart from building safety, should also offer greater certainty.
These changes will make the biggest difference to smaller sites where marginal improvements to viability could make a big difference to delivery. However, they do not remove the costs of contamination or demolition and some small sites will remain challenging.
Developing for the first time buyer market
Developers selling homes to first-time buyers have real grounds for optimism. The £4.7 billion Your First Home scheme offers eligible buyers equity loans of up to 20%, a minimum deposit of 2.5% and five years without interest on the equity loan. Applications are due to open in February 2027, with the first loans issued from April.
For developers with homes that meet the scheme’s price limits and buyers who meet its eligibility rules, this could significantly strengthen demand and improve the pace of sales. Greater confidence in sales can, in turn, make it easier to commit to future phases of delivery.
Developers will be expected to contribute towards scheme costs, annual funding is capped, and buyers still need an affordable mortgage. The government expects to support around 70,000 households but estimates only 20,000 additional homes.
Taken together, the strongest effects are likely to be on projects already close to being viable, where a reduction in costs or greater sales confidence can make a tangible difference.
Regeneration at scale presents a more demanding challenge. Large urban sites can require years of land assembly, remediation and infrastructure investment before homes generate an income.
The Budget’s wider devolution measures are designed to support wider growth opportunities. Good Growth Funds, business-rates retention and the £1.5 billion mayoral borrowing facility planned from April 2028 could give local leaders greater ability to support major projects in more bespoke ways.
For now, the likely market impact is a targeted improvement in demand and viability, with the greatest benefits for social landlords, smaller brownfield schemes and developers serving eligible first-time buyers.
That should help some opportunities proceed. However, regeneration at scale requires sustained investment in land assembly, remediation and infrastructure, often years before development generates a return. As a result, the Budget’s housing incentives are unlikely to move the dial on larger, more complex placemaking opportunities.