The first wave of funding in the government’s £39 billion Social and Affordable Homes Programme has been allocated to council, social and affordable homes.
Almost £10 billion will be shared among 33 strategic partners, including councils, housing associations and other providers that have secured long-term funding certainty to deliver homes at scale.
The funding will support the delivery of 73,600 social and affordable homes by the strategic partners over the next 10 years. Further funding will be allocated over the lifetime of the programme.
Councils, along with housing associations, will be awarded strategic partner status with Homes England, with around 60% of the homes delivered through the partnerships expected to be for social rent.
“No child should be raised in a hostel room and no family should wait 10 years for a front door of their own”, Prime Minister Andy Burnham said. “I have said from my first day in this job that everything starts with a good home.
“Nearly £10 billion will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest.
“Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”
Over £2 billion of the funding announced in the first round is expected to be spent in mayoral areas outside London. As part of the government’s wider devolution agenda, Established Mayoral Strategic Authorities (EMSAs) will set the strategic direction for the programme in their areas with the aim of ensuring investment reflects local priorities.
Over time, more funding is expected to flow directly to mayoral authorities as the programme develops, building on the government’s commitment to move power and decision-making out of Whitehall. More than £16 billion remains to be allocated outside London.
Amy Rees, chief executive officer at Homes England, said: “Today’s announcement marks an important step in delivering the government’s £39 billion Social and Affordable Homes Programme.
“Through these strategic partnerships and continuous market engagement, alongside Homes England’s wider investment including through the National Housing Bank, we can help unlock thousands of much-needed homes across England.
“By working with councils, mayors, housing associations and local partners, we can support the return of council housebuilding at scale, increase the supply of social rent homes and create thriving places that people are proud to call home.”
The funding package will help councils access more of the funding available to the programme and make full use of Right to Buy receipts, which total £1.61 billion from sales in the last financial year, and other available funding streams.
The government is investing a further £46 million over the next three years to strengthen councils’ skills, expertise and capacity to bring forward housebuilding plans.
Investment includes an expansion to the Pathways to Planning graduate scheme, delivered by the Local Government Association, which helps councils to recruit and retain graduates in specialist housebuilding roles.
Julian Francis, director of external affairs at RICS, said: “The Royal Institution of Chartered Surveyors welcomes the UK government’s commitment to expanding the supply of social and affordable housing through the first major allocation from its £39 billion Social and Affordable Homes Programme.
“The investment to strengthen local authority capacity, combined with the expansion of the Pathways to Planning programme into specialist roles including surveying and construction project management, is particularly positive. Delivering homes at scale requires not only funding but also sufficient professional skills and expertise across planning, valuation, development, construction, and asset management.”
Funding will be allocated to Greater Manchester, which will receive an estimated £529 million to support around 4,400 homes, West Midlands (£409 million to support around 3,200 homes), North East (£445 million for 3,400 homes); West Yorkshire (£441 million for 4,000 homes); Liverpool City region (£380 million for 3,100 homes) and South Yorkshire (£249 million for 2,200 homes).
The funding announcement comes after the government shared the final details of its National Planning Policy Framework, which aims to encourage a more diverse mix of housing, including more affordable homes for rural communities and stricter rules to maximise social and affordable housing delivery on low-quality grey belt land.
