In the Spending Review, £39bn was committed to affordable housing along with a further £10bn in commitments via Homes England.

 Now, experts at property consultancy Fisher German have claimed this could be of particular support to smaller sites.

“This funding is exactly what smaller sites have been waiting for to meet the sweet spot for demand from registered providers seeking land led schemes,” said Luke Brafield, partner at Fisher German.

“A lack of funding for affordable housing delivery has in some cases stalled projects of this nature in the past, but this injection of cash should help these developments move forward.”

According to Phoebe Clark, senior associate at Fisher German, long-term funding will allow for rises in placemaking.

“The sector will need to ensure that new homes not only meet demand but also deliver lasting value for communities through well-designed, energy-efficient, and inclusive developments that support health, wellbeing, and resilience,” she added, though warned this is not a “quick fix” for the Section 106 market.

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Here, registered providers will need to adapt and address internal appraisal parameters according to the senior associate.

“The lack of capital to invest in Section 106 is hindered by wider areas such as interest rates, the cost of repairs and management, and assumptions around arrears and voids,” said Phoebe.

“The funding announcements in the spending review do not address these issues and a month on, we are not yet seeing any market changes in the Section 106 market.”

Fisher German has also cautioned that more needs to be done to help first-time buyers get on the property ladder to give affordable housing investors more confidence in the sector.

However, the firm is optimistic about the impact of the Spending Review on affordable housing.

“The Spending Review could be transformational,” said Phoebe. “Combined with greater certainty over social rents, it gives our sector more confidence to plan for the long term.”

Luke added: “This is our opportunity to shape the future of housing in the UK, but we must keep the pressure on and ensure the government continues to listen to the sector.”