As we enter the second week of Andy Burnham’s tenure, there has already been much discussion around resetting housing targets. However, it seems unlikely to many that local councils have the funding or capability to drive recovery.

With open market housebuilding volumes and sales slowing across the country, deliberations at ‘No 10 in the North’ have naturally shifted toward public sector ambition to reactivate market growth. The question remains: how can underfunded councils drive a housing revival?

Andy Burnham’s commitment to a major council housebuilding initiative across Greater Manchester has captured the sector’s attention. Yet as reported in The Times, the strategy faces immediate financial and operational hurdles, including a reported £800m funding gap alongside constrained delivery capacity and a lack of in-house expertise.

While policy appetite for affordable and social housing is evident, local government delivery capability presents a major structural challenge. Local authorities across the UK continue to manage severe budgetary pressures and depleted internal development teams. Unassisted, most lack the internal infrastructure and technical resources required to bring large-scale residential developments from inception to completion.

When you consider that the housebuilding sector generates over £53 billion in annual output and invests £10.5 billion in land development each year, the operational capacity required to hit national targets clearly sits in commercial hands. This is where private sector capability becomes critical.

At the same time, hitting ambitious regional targets relies on tackling a projected shortfall of 1.3 million tradespeople. Industry opinion increasingly points toward a radical overhaul of technical education, advocating for a Dutch-style model where the public and private sectors split the responsibility and costs of vocational training equally to build a sustainable workforce.

Affordability remains the primary hurdle. Clear incentives for buyers are needed to stimulate confidence, such as stamp duty support and backing for institutional investment. At the same time, build costs remain prohibitive for viability for the developers, particularly in the Capital.

The UK market benefits from established main contractors, regional housebuilders and specialist providers equipped with the operational scale, technical expertise and supply chain resilience needed to deliver complex housing schemes. To achieve regional targets, public sector leaders will need to establish robust partnership models, relying directly on private contractor capacity to bridge the execution gap.

If local authorities leverage the proven construction capability of private sector partners, this push could provide a genuine catalyst for a broader housing recovery.