Under Delivering Homes, Building Communities, the provision of new homes under the Cost Rental model is a key element of the Government's strategy to improve affordability in the rental sector and to provide secure, long-term homes for moderate-income households, including those who may be categorised as key workers. The core principle of Cost Rental is that the rents cover the development, management and maintenance costs of the homes, so that the long-term future of the homes is financially secure and rents are not subject to the pressures of the open private market.
In line with the Programme for Government commitment to earmark certain Cost Rental homes for key local workers, last July I made the Affordable Housing Act 2021 (Cost Rental Allocation Plan) Regulations 2025. These Regulations allow for Cost Rental landlords – mostly Approved Housing bodies and increasingly the Land Development Agency – to propose ‘Allocation Plans’, which may prioritise particular homes for those with a link to an area though residence, employment or education. These Plans can help people to live and work in their local area and will improve access to Cost Rental homes for key local workers.
This approach is fair, and it is what is allowable under the law. There is no provision under current legislation to give priority to specific occupations of workers, such as teachers, nurses or guards, as part of an Allocation Plan. Defining who is and who is not a key worker is not straightforward, and indeed varies from sector to sector, both in public service and in the private sector.
As we learned during the COVID-19 pandemic, many people working in public, health and social services, as well as in the broader economy are essential workers. It is not for me, as Minister for Housing, to determine who is more deserving of a home based on their occupation.
What I can do however, is continue to work hard to ensure that housing supply is increased and that affordability housing schemes are supported to ensure that more Cost Rental homes are made available where they are needed.