Homes England under the hammer?
Researcher
As a reform focused think-tank, we here at Re:State have been pleased to see recent momentum behind reforming some of the state’s most entrenched institutions. The Government’s Housing and Regeneration Agency, Homes England, and questions about its long-term future, sit squarely at the intersection of three major policy trends.
Earlier this year, the Cabinet Office required all departments to justify the continued existence of every taxpayer-funded Arms Length Body (ALB). The government has made clear its ambition to reduce the number of quasi-autonomous bodies operating outside direct ministerial control - a mission very much aligned by our work in this area. This closely followed a significant announcement that the largest Quango in the country, NHS England, was to be abolished, with its functions absorbed back into the Department of Health and Social Care. This was warmly received by the team here at Re:State, given that we had recommended exactly this a year prior – with the important proviso that we would also then go on to devolve NHS England’s budget and powers to regional authorities across England. So far, it is unclear how committed DHSC is to real devolution of this sort.
Meanwhile, just last month, it was announced that another public body, The National Space Agency, is being brought back within direct ministerial control in the Department of Science and Information Technology (DSIT).
Another major Government trend is the ‘Devolution Revolution’ that has continued to pick up pace. The English Devolution White Paper, published last year, set out an ambitious framework for transferring powers away from Whitehall. The English Devolution and Community Empowerment Bill, currently working its way through the commons, would further entrench this shift, establishing Strategic Authorities across the country, and devolving key levers of economic growth and service delivery. Our ‘Re:Imagining the Local State’ programme has been deeply engaged in this process, exploring how powers can be practically redistributed and how local capacity can be strengthened to make devolution a success.
The third trend is the government’s mission to dramatically increase housebuilding. Ministers have pledged to deliver 1.5 million homes this Parliament, equivalent to 300,000 per year, in order to tackle a housing crisis that has left home ownership rates falling and affordability at historic lows. House prices in England are now, on average, more than 8.3 times median annual earnings, while social housing waiting lists stand at over 1.2 million households. Meeting this target requires not only money, but also institutional reform to ensure delivery is effective and locally responsive.
Each of these three trend-lines lead us back to one organisation: Homes England. Established in 2008, the housing and regeneration agency has repeatedly reshaped itself to reflect shifting government priorities. Its latest strategic plan embraces a more regional and place-based model, recognising that housing challenges are best addressed at a local level.But in our latest publication, released today, we argue that government should go further. Following the precedent set with NHS England, Homes England should be abolished, with its powers, budgets, and responsibilities redistributed to the emerging regional tier of government.
Handing Homes England’s powers to Strategic Authorities would make housing policy part of a bigger, joined-up picture - one that connects homes with transport links, skills programmes, and local economic growth. It would mean mayors and combined authorities setting priorities in line with their communities, and working directly with developers and investors to get homes built. Just as importantly, it would move decisions out of a faceless national agency and into the hands of leaders people can actually vote for, making housing policy more accountable and less remote.
Whitehall has long struggled to relinquish control, but if ministers are serious about tackling the housing crisis, delivering genuine devolution, and streamlining the state, then now is the moment to act. The UK remains the most centralised country in Europe. To change that, we must take the devolution revolution to its logical conclusion.