Funding Changes: What does it mean for Housing Associations and their Finance Teams

The recent announcement on changes to Social Housing funding has sent ripples across the sector. With an expanded £39bn Affordable Homes Programme and a proposal to allow rent increases of CPI +1% annually, Housing Associations now face a critical moment of financial recalibration.

What’s Changing?

This week, the Chancellor introduced a consultation on a new settlement that could reintroduce rent convergence—a policy that aims to align social housing rents more closely with market rates. The National Housing Federation (NHF) has welcomed the move and encouraged its members to provide evidence on how this shift could impact their operations.

Why It Matters

When rent convergence ended in 2015, the G15 group of London Housing Associations estimated a collective financial loss of £2bn. Reintroducing the policy could help standardise rent structures and reduce disparities between tenants in similar homes.

However, implementing this change is no small feat. Finance teams must now revisit long-term forecasts and rework financial models—often built in complex spreadsheets—to reflect the new policy landscape.

The Role of Planning Tools

To manage this complexity, many Housing Associations are turning to Connected Planning solutions like Anaplan. These tools allow finance teams to:

• Model multiple rent scenarios (e.g., CPI +1%, rent convergence)

• Integrate housing stock and tenant data

• Support strategic decision-making with accurate, real-time forecasts

The NHF has already called on its members to gather evidence and advocate for this policy change for Housing Associations across the UK. Tools like Anaplan make that much simpler to achieve.

Looking Ahead

Policy changes like this rarely come without warning. The current consultation period offers a valuable opportunity for stakeholders to shape the final policy.

Conclusion: A Call to Prepare

While rent convergence could enhance long-term financial sustainability for Housing Associations, it also presents a significant challenge for their Financial Planning and Analysis (FP&A) teams. Without the right tools, updating forecasts could become a major headache.

Is your FP&A team ready for the change? Are you using Connected Planning tools to stay ahead?

We’d love to hear your thoughts.
 👉 How will your organisation respond to the proposed changes?
 👉 What tools or strategies are you using to prepare?

Get in touch with our team