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New guidance on the Social and Affordable Homes Programme aims to help potential grant applicants access information before the programme launches. Stephen Delahunty rounds up the housing sector’s responses to this guidance
Homes England last week published new guidance for the Social and Affordable Homes Programme (SAHP) ahead of the launch in February 2026.
The guidance built on an earlier announcement that metro mayors across England can access £7bn from the £39bn SAHP.
The online guidance relates to £27.2bn in funding and aims to help stakeholders, including potential grant applicants, access information and support ahead of the launch of the 10-year programme.
Bidding for registered housing providers, local authorities, house builders, developers, charities and community groups is expected to open in February 2026, subject to the completion of relevant Competition and Markets Authority processes. First grants are due in April 2026.
The SAHP aims to ensure that three in every five new homes delivered are for social rent, and that they support the delivery of specialist and supported, community-led and rural housing, and increase council housebuilding.
The explicit inclusion of rural housing as a strategic priority and the empowerment of metro mayors have been particularly welcomed.
Here, Inside Housing rounds up the sector’s reaction.
Fiona Fletcher-Smith, group chief executive of L&Q, said: “The government has set out a clear ambition to deliver a decade of renewal in social housing. We owe it to everyone living in unsuitable or unaffordable homes to find a way to build at scale. It’s time for the housing sector to step up.
“As the social housing sector’s biggest builder for six consecutive years, we have a strong track record of delivering affordable homes in London and Greater Manchester. We know that no two places are the same, and that’s why we welcome the government’s support for mayors, empowering them to shape housing delivery in their regions. By working together, we can unlock challenging sites and deliver the homes, jobs and growth our country urgently needs.”
Jonathan Layzell, chief executive of Stonewater, said: “The government’s guidance regarding the SAHP 2026 to 2036 and the substantial funding commitment are precisely what the sector needs to move forward and act.
“With Homes England managing at least £27.3bn of the programme, the funding provides a long-term platform for housing providers to plan and deliver the homes the country desperately needs. We are particularly encouraged by the explicit inclusion of rural housing in the national strategic priorities. This clear focus is a significant step towards addressing the unique challenges and acute housing shortages faced by smaller towns and villages.
“This announcement follows the recent publication of The Case for Affordable Rural Housing report, commissioned by the Longleigh Foundation in partnership with Stonewater, which highlighted the need for innovation and dedicated support to overcome the barriers to building in rural areas. The SAHP’s commitment to supporting the delivery of rural homes will help to address this challenge.
“As a strategic partner with a strong track record in delivery, our goal is not just to build houses but to foster sustainable, thriving communities. We look forward to engaging with Homes England and local authorities to ensure our proposals deliver schemes that are strategically aligned with local needs, high quality and represent excellent value for money.”
Gavin Smart, chief executive of the Chartered Institute of Housing, said: “We welcome [the] publication of the Social and Affordable Homes Programme prospectuses and the additional £150m to unlock brownfield land. This builds on the government’s landmark £39bn, decade-long investment in affordable housing and provides the clarity and confidence the sector needs to plan and deliver at scale.
“Giving mayors and combined authorities a greater role in shaping regional investment – alongside new flexibility and support for councils to build at scale – provides a strong foundation for lasting change. We particularly welcome the focus on delivering 60% of homes for social rent, the most genuinely affordable option, and the recognition of the need for regeneration, supported, community-led and rural housing.
Paul Dolan, group chief executive of Riverside, said: “This £7bn of funding for metro mayors to build new social and affordable homes will help thousands of people and families to access new, good-quality homes.
“We also warmly welcome the new SAHP guidance stating that three in five homes should be social rent homes.
“At a time when we have record numbers of homeless households living in temporary accommodation, it is crucial to increase the supply of social rent homes.
“The number of homeless households moving into social housing has fallen significantly from 2004-05, when 51,040 households had their homelessness ended by moving into a social home.
“This funding will help to reduce homelessness and ease pressure on social housing waiting lists across our regions.
“Importantly, it will also enable mayors to work with Homes England to decide where affordable housing will be built across our regions to ensure new homes meet local housing needs.”
John Bowker, chair of JV North, said: “Receiving the prospectus earlier than anticipated is warmly welcomed and sends a strong message of intent to the sector from government.
“Similarly, it is really positive that bidding for the new programme is expected to open in February.
“The finer details of the £39bn SAHP can now be reviewed and we can start working up development programmes with JV North members able to build on our preparations that include a new £500m contractor and consultant framework created to deliver in volume and at speed.”
Scott Black, chief operating officer at Places for People, said: “We’re ready to hit the ground running on SAHP and welcome the government’s continued commitment to unlocking large-scale housebuilding. We are a long-standing strategic Homes England partner and last year built 2,296 homes – 90% affordable.
“With momentum and trust, we’re well-positioned to move quickly and submit an ambitious bid that maximises the impact of grant funding. Homes England needs to allocate funding based on proven delivery and accelerate bid reviews to get spades in the ground faster.
“We recognise that building homes takes time, but we’re ready to lead in this bold new chapter. With the sector’s largest five-year pipeline, we’re eager to digest the detail in the prospectus so we can plan effectively and turn this shared ambition into vital new homes – helping more communities to thrive.”
Paul Fiddaman, chief executive of Karbon Homes and chair of the North East Housing Partnership, said: “We are delighted to hear that £1.1bn has been earmarked to build more social and affordable homes in the North East, and an additional £23m in brownfield funding to help remediate derelict land and turn it into vibrant housing developments. With around 70,000 people on the waiting list for social homes across the region, this is a much welcome boost.
“As members of the North East Housing Partnership, we will work together to deliver a programme of thousands of affordable homes across the region and we look forward to working with Homes England, the elected mayors and the combined authorities to ensure we deliver good-quality homes that meet a wide range of housing needs.”
Robyn Lee, managing director of social impact investor HSPG, said: “The shortage of safe, affordable homes has reached crisis point, affecting thousands across the country.
“The confirmed £27.3bn investment to deliver new social and affordable homes outside London is a vital step to closing the funding gap that has long held back progress. Our organisation supports some of society’s most vulnerable people and sees first-hand the impact that not having a secure, high-quality home can have.
“That’s why we welcome the focus on specialist and supported housing, the commitment to long-term delivery, and the requirement that at least 60% of the total homes are for social rent. Now the focus must turn to strong public-private partnerships to turn this funding into much-needed homes for individuals and communities.”
Sara Roberts, chief services officer at Kingdom Academy, said: “A decade of renewal for housing needs a decade of investment in skills.
“Developing capability is not simply about completing a course. It is about building judgement, communication, resilience and professional clarity over time.
“This is where apprenticeships and professional qualifications play an important role. When designed around real job roles, they provide structured development that fits alongside day-to-day work, giving staff the time, support and recognition to develop confidence in practice. They also create clearer progression routes, which helps with both retention and recruitment.
“Long-term professional development should be seen as a core part of housing infrastructure. It improves outcomes, strengthens tenancy sustainment and reduces avoidable conflict. Most importantly, it supports the people doing the work to feel equipped and valued in their roles.
“If public funding is protected for new build programmes, there is a strong case for applying the same strategic commitment to workforce development. Homes and the capability to support those who live in them are closely connected. When only one side is invested in, pressure builds quickly elsewhere.”
Steve Rotheram, mayor of Liverpool City Region, said: “This marks the single biggest earmarked investment in housing our region has ever seen – and the largest pot of funding we’ve ever seen for social and affordable homes. It’s a massive vote of confidence from the government in our region’s ability to deliver.
“Since I was elected, we’ve built more than 32,000 homes, invested a further £60m developing brownfield sites, and retrofitted 10,000 houses. We’ve built up real momentum – but now we’re ready to turbocharge our housebuilding plans.
“This new funding will help us go even further towards our target of building 16,000 new social and affordable homes over the next decade – good-quality homes that local people can be proud of while also helping us to tackle the homelessness crisis.
“We’ve got the vision, the skills and an abundance of ambition to help the government hit its national targets – but, most importantly, this is about helping more local people and families into safe, secure and affordable homes of their own. Homes where people can put down roots, build their futures and get on the housing ladder.
“We’re ambitious, we’re excited and we’re ready to get to work.”
Kim McGuinness, mayor of the North East, said: “I am going to make sure we use every penny of the £1.1bn earmarked to help build thousands more homes to rent and more affordable homes across the North East.
“The next step is making sure Homes England are ready to match this ambition and will move at speed to start building the houses we need. While we work up those plans we’re getting on with the job of preparing sites for new housing, ready to far exceed the 705 new homes we have so far cleared the way for on brownfield land in Gateshead, Easington, Ashington and many other parts of the region.”
Oliver Coppard, mayor of South Yorkshire, said: “This money from government is game-changing for us, giving us the opportunity to clear hundreds of derelict sites and build thousands of homes.
“£700m will allow us to focus on helping to build social and affordable housing, meaning we can offer everyone in our community a high-quality home in South Yorkshire, so they can stay near and go far.”
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