How Homes England is approaching the new Affordable Homes Programme

Despite COVID-19, this long-term funding settlement gives our partners the confidence they need to invest in new homes and the communities they serve. The government has given Homes England a renewed mandate to accelerate the delivery of high-quality, affordable homes.

The current programme of 23 strategic partnerships with 27 housing associations is on track to deliver an additional 40,000 homes – a testament to the ambition and innovation of our partners.

“There is a long-term opportunity to work more strategically with new and existing partners across the sector”

In 2019/20, working with our broad range of partners, three-quarters of housebuilding starts on site supported by the agency were for affordable homes, which is a 17% increase on the previous year; there was also a significant increase in social rent resulting from additional government funding.

Together, we have come a long way, but there is a lot more still to do. The next challenge is to build on that firm foundation by further developing our partnership approach to provide a catalyst for additional investment and development by the market, working from the smallest proposition for a single scheme to a large-scale multi-year deal.

One example is Homes England’s strategic partnership with Places for People, which has led to detailed discussions on new and emerging sectors, including construction productivity, retirement living and the establishment of funds to leverage wider private capital into the sector. Its investment company, PfP Capital, is exploring options to leverage wider private capital into the sector, with focused themes, to further diversify the range of tenures available in certain areas.

There is a long-term opportunity to work more strategically with new and existing partners across the sector: housing associations, new commercial entrants and councils, which we know are looking to start or speed up housebuilding. We will find ways to support all partners meet their development ambitions.

In addition to new homes, the fund enables us to deliver on other strategic priorities. We will prioritise the use of modern methods of construction (MMC) to increase productivity. Design quality and imaginative placemaking will be a strong theme of the new fund to support the government’s commitment to “building beautiful”.

“We need to understand how this new funding can best support your housebuilding ambitions and market recovery challenges”

Our message is that Homes England is a very different kind of organisation from the one that embarked on the current programme. Increasing innovation within the sector is central to our mission, and the new programme must diversify partners and secure a step change in delivery. I’d encourage you to tell us how we can help meet your ambitious objectives, whether you currently deliver affordable homes or are yet to do so.

In the context of COVID-19, the significance of this affordable housing settlement is even greater and will support the construction-led market recovery signalled in the Prime Minister’s recent ‘build, build, build’ speech. To grasp that opportunity together, we need to understand how this new funding can best support your housebuilding ambitions and market recovery challenges.

We have listened to feedback from partners involved in the previous fund. To broaden the range of organisations involved, we have simplified the online guidance as part of our digital transformation programme to make doing business with the agency easier.

On behalf of Homes England, let me say we look forward to working with you. For guidance on how to get involved, you can visit this page.

Simon Dudley, interim chair, Homes England