What £39 Billion of Government Housing Investment Means for UK Regional Property Growth

Introduction

In June 2025, Chancellor Rachel Reeves announced a significant £39 billion commitment to social and affordable housing, representing one of the most substantial housing investments in recent UK history (Financial Times). This investment reflects more than a policy shift, it also demonstrates intent to deliver sustainable growth across the UK’s key regional markets. With over £10 billion allocated to Homes England to support private-sector partnerships, the ripple effects will be especially pronounced in high-growth cities like Manchester, Liverpool, and Sheffield.

Key Takeaways

• Unprecedented funding is driving large-scale housing projects across the UK’s regions
• Government and private sector partnerships are unlocking new investment channels
• Regeneration zones benefit from jobs, infrastructure, and rising demand
• Rothmore offers exclusive access to 60+ developments across key UK cities

A Regional Framework for Growth

This strategy is aimed at more than just increasing supply. It’s about building better-connected communities and attracting private investment into towns and cities that have long been underfunded. Homes England’s £10 billion fund enables collaboration with developers, accelerating housing pipelines and reducing barriers to entry for investors.
In addition to the main package, the government confirmed a further £2 billion in March 2025 to support the delivery of 18,000 new homes in cities including Manchester and Liverpool (BBC News). This layered approach improves access to housing while ensuring that infrastructure and local employment are part of the equation.

What This Means for Regional Investors

The impact of this strategy extends beyond bricks and mortar. According to a joint report by Shelter and the National Housing Federation, building 90,000 social homes annually could generate £51.2 billion for the economy and create over 140,000 construction jobs in the first year alone. For investors, these figures signal growing demand, increased local spending, and robust rental markets in regeneration areas.
Developments like Liverpool Waters, Ancoats in Manchester, and Sheffield’s city centre are already seeing momentum. With planned upgrades to transport and public services, these regions are poised for long-term growth, making them ideal for investors focused on capital appreciation and consistent yields.

Investor Opportunities in a Shifting Landscape

This level of government backing presents clear benefits for private investors:

• Mixed-tenure projects bring both stability and strong rental performance
• Joint ventures with housing associations offer reliable long-term income
• Government support can lead to faster planning and reduced risk
• Investing early in rising markets provides a capital growth advantage

Many of the developments expected to benefit are located in areas where demand already outpaces supply, making now a key moment to consider your options. With planning backlogs easing and incentives aligning, investors now have a clearer route to secure developments in well-supported locations.

How Rothmore Property Can Help

At Rothmore Property, we specialise in helping both UK and international investors identify and secure the right opportunities across the country’s top-performing regional markets. With over 60 developments available, we offer direct access to off-market and high-demand new-build homes that align with government growth initiatives.

Whether you’re targeting strong rental yields, capital appreciation, or a long-term wealth strategy, our experienced team offers end-to-end support. From sourcing and due diligence to reservation and completion. We understand the market, and we tailor our recommendations to fit your goals.

As an award-winning agency recognised across the industry, Rothmore Property provides trusted advice and exclusive access to some of the UK’s most promising regeneration-led developments.

Conclusion

This £39 billion housing initiative is set to reshape the UK’s property market. It represents a clear direction toward regeneration and regional growth, especially for cities outside of London.

For investors, it offers the chance to get ahead of the curve in areas primed for regeneration and growth. With local economies expanding and housing supply rising, the path is clear: now is the time to look to the regions for high-potential property investment.
If you’re considering where to invest next, now is the time to look north. Rothmore Property is here to guide you at every step.