Andy Burnham has pledged to launch the largest council housing construction programme in the United Kingdom since the postwar period by compelling the Treasury to make public land available for local authority housing projects. Speaking to Members of Parliament this week, Burnham criticized the extensive amount of publicly owned land that remains unused for housing development and indicated that he would instruct his chancellor to prioritize unlocking state land for building social and council homes.

The initiative aims to address Britain’s ongoing housing shortage amid steadily growing waiting lists and the loss of nearly 1.5 million council homes since the 1980s. Burnham, who won a recent by-election in Makerfield, emphasized the need to return housing provision to local democratic control, distinguishing council houses from broader social housing managed by housing associations and other bodies. He characterized the current housing situation as a “trap” and pledged to use vacant public land to reduce costs for local authorities undertaking the building programme.

While the plans have been welcomed by some, they are expected to ignite tensions within government, particularly between the prime minister’s office and Whitehall departments that control large tracts of public land. The Ministry of Defence, the United Kingdom’s largest landholder, has extensive areas occupied by military bases and training grounds, and remains cautious about relinquishing assets without financial compensation. A government source noted the ministry’s need to secure returns if assets were sold or repurposed.

Experts also highlighted logistical challenges, including constrained council budgets and a complex planning system that has hindered housing development for decades. Many local authorities have not built new housing for several decades and lack the infrastructure and financial capacity to manage large-scale construction programmes independently. According to a source involved in housing policy, the postwar era featured dedicated departments within councils that facilitated mass building, a framework no longer in place amid current budget pressures.

The drive aligns with broader government commitments made in the upcoming 2025 spending review, which includes a £39 billion investment in social and affordable housing. Approximately 40 percent of this funding is earmarked for shared ownership and affordable rent homes, with housing associations as key delivery partners. Burnham has argued this investment should be redirected to local authorities to prioritize council housing, which typically offers rents at about half of the local market rate, compared to affordable homes where rent may be set at up to 80 percent of market value.

However, the increased costs associated with building council houses could add 20 to 25 percent to total expenditures, potentially requiring an additional £20 billion to restore council house building to levels seen in the 1950s. The Home Builders Federation (HBF) welcomed the renewed focus on expanding housing supply but stressed the importance of reforming the planning system to enable delivery. Steve Turner, the HBF’s executive director, noted that while private sector developers stand ready to contribute, past governments have struggled to implement lasting solutions.

Miatta Fahnbulleh, a Labour MP involved in shaping the housing policy, acknowledged the need for balance in spending allocation. She indicated that while diverting the entire social housing budget toward council homes may not be feasible, a strategic approach would be necessary to meet housing demand and address affordability challenges.

Burnham underscored the financial strain that Britain’s housing crisis imposes on public coffers, citing rising costs for temporary accommodation and homelessness as drivers necessitating urgent action on land use and homebuilding. The proposal represents a significant political and operational undertaking as the government seeks to reverse decades of declining council house construction.