Mayors outside of London will be given greater influence over the government’s £39 billion Social and Affordable Homes Programme, working jointly with Homes England to shape the course of action for affordable housing money in six regions.
The Social and Affordable Homes Programme is a £39 billion, 10-year programme (2026-2036) delivered through Homes England (outside London) and the Greater London Authority (in London).
Budgets will be awarded directly to mayoral strategic authorities in Greater Manchester (£1.8 billion), West Midlands (£1.7 billion), North East (£1.1 billion), West Yorkshire (£1 billion), Liverpool City Region (£700 million) and South Yorkshire (£700 million), each of which will set out plans for the types of homes that get built, the sites prioritised for construction and how many suitable bids for grant funding could come forward in each area.
As part of the plans, housing providers will be required to demonstrate how their bids align with local priorities, accelerating the delivery of homes that meet local needs to bring down social housing waiting lists.
The government is also removing barriers preventing councils building at scale, including introducing a new route to bid into the Social and Affordable Homes Programme. Homes England’s new portfolio route will help councils to bid for grant funding at an earlier stage in the pre-development process and across several sites at once, which the government hopes will see larger, more ambitious housing projects in the pipeline.
And, from next year, councils will be able to combine Right to Buy receipts with grant funding. ‘The option to mix receipts with grants will allow councils to be more ambitious in their bids to the Social and Affordable Homes Programme, ensuring that they can build as many homes as possible’, the Ministry of Housing, Communities and Local Government said.
Homes England chief executive Amy Rees CB (pictured) commented:
“The importance of this funding cannot be underestimated in opening the door to thousands of new, affordable homes for communities across the country – and we will do everything in our power to ensure every penny of grant allocation helps deliver the right homes in the right places, at pace, for the people who need them.
“Our team is incredibly proud and driven to help create a new generation of affordable and social rent homes, working alongside local leaders who know their communities best, and providers who have the expertise and commitment to deliver with our support.”
‘Families have been trapped in so-called temporary accommodation for years or stuck on council waiting lists with no hope of a secure home’, housing secretary Steve Reed added.
“We’re changing that for good with the biggest boost to social housebuilding in a generation and getting behind mayors who are ready to build affordable housing across their regions.
“We’re also backing councils to build again and transform derelict sites into thriving neighbourhoods, urging them to go big, go bold and go build.”
A further £150 million will be awarded directly to mayoral strategic authorities to transform derelict brownfield sites into over 4,000 new homes, in addition to the previous £600 million Brownfield Housing Fund, which has already facilitated work on 22,000 new homes.
Bidding guidance will be published by Homes England and the Greater London Authority ahead of bidding opening in February 2026.
