MHCLG annual report and accounts 2024 to 2025 · first published 21 July 2025
This is the Ministry of Housing, Communities and Local Government's (MHCLG's) annual report for the financial year 2024–25. It sets out what the department delivered, what it spent, and what it plans to prioritise for the rest of this Parliament. It is not a procurement policy note and does not change procurement rules directly. However, it signals where very large sums of public money are being directed — including £39 billion for a new Affordable Homes Programme, a £16 billion National Housing Bank, £3 billion in housebuilder guarantees, and significant local growth and building safety funding — all of which will flow through contracts and grants. For SMEs, the most important takeaway is knowing which programmes are live or imminent, so you can position your business, track relevant procurement pipelines, and apply to schemes designed specifically for smaller builders and suppliers.
WHO THIS APPLIES TO
THE ENKII VIEW
The document explicitly names SME housebuilders as a target beneficiary of ENABLE Build (a guarantee scheme for SME developers) and the Home Building Fund, and signals a 10-year, £39 billion affordable housing pipeline — the kind of long-run certainty that makes investment in capacity worthwhile for smaller firms. The Remediation Acceleration Plan's commitment to publish pipeline data to "build contractor confidence and stimulate investment in skills, capacity, and training" is a direct green light for SME cladding and remediation contractors to scale up now. The Digital Funding Service onboarding 17 grants also hints at more standardised, accessible grant application routes that typically favour smaller, less resourced applicants.
1. Apply to the Home Building Fund and investigate ENABLE Build via your existing lender — both are explicitly designed for smaller developers and ENABLE Build capacity has just doubled to £2 billion. Contact Homes England directly to understand eligibility.
SME housebuilders and residential developers — The document states ENABLE Build is 'a portfolio product, where a guarantee is provided to a lender that covers a portfolio of eligible loans to SME housebuilders' and that the Home Building Fund 'provides development finance to small and medium-sized housebuilders' on track to deliver 54,000 homes.
2. Monitor the MHCLG building safety remediation pipeline data publication on GOV.UK (updated monthly) and register interest with the Industry Competence Steering Group's (ICSG) modular cladder training launching Autumn 2025 — then use both to win work on the 67% of identified buildings yet to complete remediation.
Cladding, remediation and building safety contractors — The document confirms MHCLG is 'publishing pipeline data to build contractor confidence and stimulate investment in skills, capacity, and training' and that only 33% of identified buildings have completed remediation, leaving a substantial outstanding pipeline.
3. Begin preparing your products and processes for the Future Homes Standard due in Autumn 2025 — audit your supply chain for low-carbon heating compatibility and high energy efficiency materials now, so you can credibly bid for new-build contracts from late 2025 onwards.
Construction SMEs and new-build suppliers — The document states 'The Future Homes Standard is due to be delivered in Autumn 2025 and will ensure new homes are built with low carbon heating and high energy efficiency standards' — non-compliant products and methods will be locked out of new-build contracts.
4. Review your response-time SLAs (service-level agreements) and capacity now — Awaab's Law from October 2025 will require social landlords to fix damp, mould and emergency repairs within fixed statutory timeframes, and they will need compliant contractors ready to deliver.
SME repairs, maintenance and property services firms working with social landlords — The document confirms 'Awaab's Law would be introduced on a phased basis from October 2025, setting new requirements for social landlords to address hazards in social homes within fixed time periods, beginning with damp and mould and all emergency repairs.'
5. Identify whether your area is one of the 75 named Plan for Neighbourhoods communities (each receiving £20 million over 10 years) and engage your local authority or Combined Authority now about upcoming procurement or grant rounds flowing from this funding.
SMEs in community regeneration, social enterprise and local services — The document states 75 communities 'will each receive £20 million funding over the next decade to revitalise local areas' — early engagement with the commissioning body maximises your chance of being included in procurement design.
6. Offer your cyber security or digital services as a 'Get CAF Ready' solution — over two-thirds of English local authorities have signed up to the Cyber Assurance Framework (CAF) for local government and will need support to meet the standard.
Cyber security and digital SMEs supplying local government — The document notes the CAF 'sets a clear cyber security standard for the sector' and that the 'Get CAF Ready' support offer 'was available to all English local authorities and which over two-thirds of the sector signed up to' — creating an immediate, large and identified buyer base.
7. Use the MHCLG Digital Funding Service portal for grant applications where available — 17 grants are now onboarded, with more expected, offering a standardised application process that levels the playing field versus larger, more resourced applicants.
All SMEs bidding for MHCLG-funded grants — The document states the Funding Service is 'transforming the way the department delivers grants to councils and communities' with 'a more consistent approach for internal and external users.'
8. Position your pipeline and capacity planning around the 10-year, £39 billion Affordable Homes Programme successor launching from 2026–27 — engage Homes England now to understand how to qualify as a registered provider or delivery partner for the new programme.
SME housebuilders and construction firms planning ahead — The document describes this as 'the biggest boost to social and affordable housing investment in a generation' — a 10-year commitment provides the long-run demand certainty that justifies SME investment in workforce, equipment and skills now.
Every rule below quotes the official document verbatim.
MHCLG announced a £39 billion commitment to a successor Affordable Homes Programme (AHP) over 10 years from 2026–27 to 2035–36, described as the biggest boost to social and affordable housing investment in a generation. (Housing construction sector; all suppliers to affordable and social housing delivery from 2026–27)
“on 11 June 2025 the government announced the biggest boost to social and affordable housing investment in a generation, with a £39 billion commitment to a successor to the Affordable Homes Programme (AHP) over 10 years from 2026-27 to 2035-36”
A new government-backed National Housing Bank, a subsidiary of Homes England, will be publicly owned and backed with £16 billion of financial capacity, with £6 billion of existing finance to be allocated this Parliament, aiming to leverage £53 billion of additional private investment. (Housebuilders and developers, including SME housebuilders; from 2025 onwards)
“the Deputy Prime Minister announced a new government-backed National Housing Bank to further support housebuilding. The Bank, a subsidiary of Homes England, will be publicly owned and backed with £16 billion of financial capacity, on top of £6 billion of existing finance to be allocated this Parliament, in order to accelerate housebuilding and leverage in £53 billion of additional private investment”
ENABLE Build is a portfolio guarantee product where a guarantee is provided to a lender covering a portfolio of eligible loans specifically to SME housebuilders, with capacity increased from £1 billion to £2 billion. (SME housebuilders seeking development finance)
“increasing the capacity of ENABLE Build from £1 billion to £2 billion to support small and medium size developers to access the funding required to build and deliver new homes. ENABLE Build is a 'portfolio product', where a guarantee is provided to a lender that covers a portfolio of eligible loans to SME housebuilders”
The Home Building Fund provides development finance to small and medium-sized housebuilders and is on track to deliver 54,000 new homes. (SME housebuilders seeking development finance)
“We are also on track to deliver 54,000 new homes through the Home Building Fund, which provides development finance to small and medium-sized housebuilders”
The Private Rented Sector Guarantee Scheme was reopened with £2 billion of capacity to support build-to-rent developers. (Build-to-rent developers, including smaller operators)
“reopening the Private Rented Sector Guarantee Scheme with £2 billion of capacity to support build to rent developers”
MHCLG is publishing pipeline data for building remediation work to build contractor confidence and stimulate investment in skills, capacity and training, with modular training for cladders expected to launch in Autumn 2025. (Remediation and cladding contractors; all sizes; from Autumn 2025)
“we are publishing pipeline data to build contractor confidence and stimulate investment in skills, capacity, and training. In parallel, we are working with the Industry Competence Steering Group (ICSG) to develop modular training for cladders, with an expected launch in Autumn 2025”
As of end of 2024–25, 1,637 buildings (33% of all identified) have completed remediation, with remediation started or completed on 49% of 5,031 identified buildings — indicating a large remaining pipeline. (Building safety remediation contractors; England)
“The number of buildings remediated by the end of 2024-25 was 1,637, which is 33% of all buildings identified. Remediation work has commenced or completed on 49% of buildings identified.”
The Plan for Neighbourhoods names 75 communities each receiving £20 million over the next decade to revitalise local areas. (Community, regeneration and local services suppliers in 75 named areas)
“Launched the Plan for Neighbourhoods in March, naming 75 communities across the country, who will each receive £20 million funding over the next decade to revitalise local areas”
The department delivered cashable commercial savings of £9.9 million in 2024–25, exceeding its target and 12.5% ahead of the prior year, alongside further commercial benefits of £5.1 million. (All MHCLG suppliers; internal commercial efficiency drive)
“Delivered cashable commercial savings of £9.9 million in 2024-25, which exceeded our target and was 12.5% ahead of prior year. Further commercial benefits of £5.1 million were also delivered.”
The Digital Funding Service has onboarded 17 MHCLG grants, with estimated delivery savings of £6 million for the department and £5 million for local authorities annually, standardising grant application processes. (Grant applicants including local authorities and community organisations)
“Onboarded 17 grants through the Digital Funding Service, with estimated delivery savings of £6 million for the department and £5 million for local government annually”
The Future Homes Standard — the government's net-zero-ready standard for new homes — is due to be delivered in Autumn 2025. (Housebuilders and construction suppliers; from Autumn 2025)
“The Future Homes Standard is due to be delivered in Autumn 2025 and will ensure new homes are built with low carbon heating and high energy efficiency standards.”
Awaab's Law will be introduced on a phased basis from October 2025, initially requiring social landlords to address damp, mould and emergency repairs within fixed time periods, expanding to wider hazards in 2026 and 2027. (Social landlords and their repair/maintenance contractors; from October 2025)
“confirmed that Awaab's Law would be introduced on a phased basis from October 2025, setting new requirements for social landlords to address hazards in social homes within fixed time periods, beginning with damp and mould and all emergency repairs, before expanding out to a wider range of hazards in 2026 and 2027”
The Cyber Assurance Framework (CAF) for local government was launched in October 2024, with a 'Get CAF Ready' support offer signed up to by over two-thirds of English local authorities. (Local government digital and cyber security suppliers; all English local authorities)
“Launched the Cyber Assurance Framework (CAF) for local government in October 2024, which sets a clear cyber security standard for the sector... which was available to all English local authorities and which over two-thirds of the sector signed up to”
The Spending Review 2025 confirmed an annual average real-terms growth rate of 3.0% for MHCLG over the next Spending Review period, with capital investment growing at 3.2% per annum in real terms. (All MHCLG suppliers; from 2026–27 Spending Review period)
“The Spending Review 2025 (SR25) confirmed an annual average real terms growth rate of 3.0% over the next SR period, with annual average real terms growth in capital investment of 3.2%”
The New Homes Accelerator Scheme is supporting rapid development of 20,000 new homes, with £3 million of grant funding distributed to local authorities for site-specific support. (Housebuilders and built environment consultants working on large stalled sites)
“Established the New Homes Accelerator Scheme, supporting the rapid development of 20,000 new homes. We stood up a multidisciplinary team of built environment specialists across MHCLG and Homes England who provided support to 26 large sites to unblock complex planning issues and distributed £3 million of grant funding to local authorities for site-specific support.”
This briefing is enkii's interpretation of the official document — the official text always governs.
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