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The National Housing Federation (NHF) has urged the chancellor to bring forward funding for the government’s £39bn Social and Affordable Homes Programme (SAHP), warning that scaling back bids now could stall the sector just as it is ready to build.
The federation has written to chancellor Rachel Reeves calling for more funding to be brought forward in the early years of the 10-year programme, after Inside Housing reported that providers had been asked to re-profile bids to the oversubscribed scheme.
Kate Henderson, chief executive of the NHF, said asking housing associations to scale back their ambitions would “waste” the financial capacity ministers had worked to unlock and risk delaying desperately needed social homes.
The SAHP is the government’s flagship fund for social and affordable housing in England, with £39bn available to councils and housing associations.
Inside Housing previously reported that Homes England had asked partners to consider how a reduction to the speed of grant drawdown would impact their bids, after seeing “very strong interest” in strategic partnership bidding.
The Greater London Authority (GLA) also told bidders for the London SAHP that the programme was “substantially overbid” and offered them the opportunity to submit revised bids.
Amy Rees, chief executive of Homes England, previously said the agency had to make sure the drawdown of funds was “realistic to the delivery that we’re going to see”.
But the NHF has argued that bringing forward funding would allow providers to turn balance sheet capacity into starts on site, rather than forcing them to trim delivery plans.
Ms Henderson said: “Over the past year, government decisions have put the social housing sector in a stronger financial position, and we are now seeing the results through ambitious bids to the Social and Affordable Homes Programme from housing associations ready to deliver a new generation of social homes.
“However, asking housing associations to scale back these bids, at a time when more families than ever are stuck in temporary accommodation, risks undermining that progress.
“It would waste the financial capacity the government has worked hard to unlock, stall momentum and delay the delivery of desperately needed new social homes.”
The intervention sharpens pressure on the Treasury over how the £39bn programme is profiled over the next decade.
While the overall size of the fund has been welcomed by the sector, providers have warned that delivery depends on when grant is available, not just the headline total.
Ms Henderson said: “Bringing forward more funding in the early years of the programme would turn capacity into starts on site, match the scale of ambition in our members’ bids and get more social homes built more quickly.
“It would also provide vital support to the construction sector and wider economy in the event of market downturn.
“That’s why we’ve written to the chancellor to clearly set out this case and urge for funding to be brought forward so our members can get building as soon as possible.”
Homes England has said strategic partnerships are expected to be confirmed in September, although the agency has indicated it would like to accelerate the process if possible.
Amy Rees is speaking at Housing 2026, taking place 23-25 June. Find out more below
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