Three in five homes should be social rent under new guidance for Social and Affordable Homes Programme

Pat Ritchie, chair of Homes England, said: “We have designed the new programme to support local leaders to meet the affordable and social housing needs of the people they serve, and to give long-term confidence to the housing sector to invest and achieve such vital ambitions through collaboration and partnership. 

“The commitment of £2bn in bridge funding will help ensure the existing momentum to create new affordable and social homes continues, and builds further as the current programme ends and the new one begins. Its 10-year programme life gives delivery partners the stability and confidence to plan, invest and build at scale for the good of communities.” 

Many of the new programme’s requirements mirror the current 2021-26 scheme, including Homes England managing all provider bids and the availability of two different application routes. 

The continuous market engagement route is where an applicant will deliver on a specific site or sites, while the strategic partnership route is where an applicant will deliver a certain number of homes over a set time period.  

A new digital system will be introduced to streamline applications and grant management, with further guidance and information provided ahead of bidding opening.   

Shahi Islam, affordable housing director at Homes England, said: “Our aim is for at least three in every five affordable homes funded through this programme to be for social rent, and our team is equally passionate about supporting locally led ambitions to provide specialist, supported and community housing across the country.

“Together, we are building on what works. Many programme requirements will mirror the current 2021-2026 Affordable Homes Programme, helping maintain delivery momentum and minimise disruption. 

“The new guidance has been released now to help the sector prepare for the new programme ahead of its official launch and the application window opening. Now is the time to reach out for support, and our team is ready and waiting to help stakeholders be clear and confident in how they can contribute to delivering much-needed affordable and social rent homes for communities the length and breadth of the country.” 

Sector reaction

Tom Hunt, chair of the inclusive growth committee at the Local Government Association, said: “The country desperately needs more social and affordable housing, so we value the publication of this guidance. 

“Given the key role for councils in delivering these homes, it is crucial that they remain at the heart of delivery, and that mayors work closely with local authorities in their areas to achieve the most from this money. 

“It is also positive that a number of councils will receive grant funding support through the Council Housebuilding Support Fund to support access to and maximise housing delivery through the programme.  

“Councils are ready to enable and deliver the social and affordable housing needed in our communities and country, and will need sufficient time to work through this guidance to ensure they are in the best position to meet its aims.” 

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 longstanding 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.” 

Tracy Harrison, chief executive at the Northern Housing Consortium, said: “The government’s landmark £39bn Social and Affordable Homes programme is great news for our communities across the North.

"The policy detail and priorities laid out in the prospectus, alongside long-term funding certainty, will allow our members to plan the development of new homes with confidence and deliver the social and affordable homes that our communities desperately need.

“We especially welcome the confirmation that elected mayors across the North will play a major role in the delivery of the next programme. They will have a greater say over funding and a bigger role in identifying and prioritising specific sites, and the type of homes that should be built in their areas.

“Devolution has increased collaboration in the North’s social housing sector through housing partnerships, and the new guidance supports the sector to take this further with more joint-working on bids. We also welcome the support for our local authority members to deliver much-needed homes.

“In many areas of the North, regeneration is a priority, and the new prospectus gives social housing providers welcome flexibility to replace homes that no longer meet the needs of communities, including over multiple sites.

“We’ve consistently highlighted to government the need for more local control, investment in regeneration and longer-term funding certainty. Today’s announcements show that the government is keen to support our members to realise their ambition of providing more warm, safe and affordable homes.”