Up to 8,500 Affordable Homes at Risk of Standing Empty

Thousands of new Affordable Homes may stand empty over the next year, as more than 700 developments across England face delays or suspension. According to the Home Builders Federation (HBF), reduced investment from social housing providers has left hundreds of completed properties without buyers — halting progress and putting pressure on builders.

Under Section 106 agreements, developers are required to build a share of homes that meet the government’s Affordable Homes definition — usually sold to housing associations at below market value. However, many social housing providers are struggling to commit financially, leaving around 900 completed homes currently standing empty. Without firm contracts, developers are forced to slow down or pause projects entirely. For small and medium builders, this ties up capital and restricts cashflow, making it difficult to move ahead with future phases or new developments.

The HBF’s warning comes as Zoopla reports that building new homes is no longer financially viable across half of England. With affordability pressures mounting and temporary accommodation use rising, industry experts fear that empty Affordable Homes could worsen the UK’s housing shortage. HBF Chief Executive Neil Jefferson commented: “Against rising affordability pressures and increasing numbers of families living in temporary accommodation, it cannot be that Affordable Homes are left standing empty. While government housing announcements have been welcome, registered providers remain unable to bid, and private buyers unable to buy — leaving the housing outlook increasingly uncertain.”