Andy Burnham £39bn council house plan faces criticism over output levels

Andy Burnham, widely expected to assume the role of Prime Minister on 20 July 2026, has positioned a nationwide council house building programme at the heart of his governing agenda. Describing the current state of British housing as a "housing trap," Burnham has pledged to oversee the largest expansion of public housing since the post-war era. This initiative is intended to be managed through a new "No 10 North" office based in Manchester.

However, the fiscal and logistical foundations of this plan have drawn sharp criticism. A report published on 6 July 2026 by the Centre for Policy Studies (Cps) contests the viability of Burnham’s proposal, which reportedly involves redirecting the existing £39bn Affordable Homes Programme over the next decade. The CPS suggests that this £3.9bn annual allocation would yield between 14,335 and 15,494 homes per year, based on current construction costs of approximately £251,700 for a three-bedroom semi-detached property. According to the think tank, this would represent only 5 per cent of the government's annual housing target for England.

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The economic critique extends to the ongoing management of such properties. Ben Hopkinson, Head of Housing and Infrastructure at the CPS, noted that social rent homes frequently incur costs that exceed their rental income, creating a permanent liability for the public purse. The report estimates that the average social rent home in England charges £5,942 per year in rent but costs £6,280 to maintain and manage. In London, these figures are higher, with maintenance costs reaching £8,720 against a rent of £7,380.

The CPS analysis further highlights the significant taxpayer support already dedicated to housing. In 2024/25, the UK spent £36bn on housing benefit and the Universal Credit housing element, with England accounting for £32bn. Furthermore, the think tank calculates an implicit annual subsidy of £43bn, representing the difference between social rent rates and private market rates across the country’s 4.2 million social homes. When explicit and implicit subsidies are combined, the CPS places the total annual cost of public housing in England at £79bn.

"Subsidising rents for some on the taxpayer’s dime while refusing to tackle the broader lack of housing for all tenures suggests Andy Burnham is going to be yet another Prime Minister driven by ideology, not what actually works."

Ben Hopkinson, Head of Housing and Infrastructure, via CPS

Industry insiders and government officials have also raised concerns regarding the implementation of the plan. Reports suggest that redirecting the existing £39bn Affordable Homes Programme toward council-built homes could destabilize the current mix of housing tenures. Housing industry sources warned that because social rent homes are more expensive to fund than other affordable housing options, an exclusive focus on council units could result in a lower overall volume of new homes being delivered unless additional, currently unidentified, funding is secured. some officials have questioned whether regional authorities possess the necessary capacity to oversee such a rapid expansion in building activity.

Despite these criticisms, Burnham’s vision has found support among those advocating for structural reform to homelessness services. The homelessness charity Crisis has welcomed the proposed adoption of a "Housing First" model—a policy where individuals are provided with permanent housing as a foundation for support services, similar to the approach taken in Finland. Matt Downie, chief executive of Crisis, stated that the ambition behind the programme is exactly what is needed in the face of rising homelessness and record numbers of households in temporary accommodation.