CIH welcomes government announcement of first £9.6 billion of affordable homes funding

The government has announced the first allocations from its £39 billion Social and Affordable Homes Programme (SAHP), with almost £9.6 billion awarded to strategic partners to support the delivery of more than 73,000 social and affordable homes across England over the next decade. 

Thirty-three strategic partners, including councils, housing associations and other providers, will receive long-term funding allocations through Homes England. Around 60% of homes delivered through the partnerships are expected to be for social rent, with nearly two-thirds of homes funded outside London expected to be at social rent levels. 

The announcement is the first major allocation from the government's ten-year £39 billion SAHP, with more than £16 billion still to be allocated outside London. 

A key feature of the announcement is a renewed focus on local authority housebuilding. Councils will be awarded strategic partner status alongside housing associations, giving them access to longer-term funding arrangements intended to support housing delivery at greater scale. 

Ministers also confirmed measures designed to strengthen councils' development capacity, including a further £46 million investment over the next three years to support housebuilding skills, expertise and planning capacity. The funding will continue programmes including the Council Housebuilding Support Fund, the Council Housebuilding Support Service and the Pathways to Planning graduate scheme. Councils will also be supported to make greater use of retained Right to Buy receipts and other funding streams.  

The announcement forms part of the government's wider devolution agenda, with Established Mayoral Strategic Authorities (EMSAs) playing a greater role in shaping housing investment in their areas. More than £2 billion of the funding announced is expected to be spent in mayoral authority areas outside London. 

Estimated investment through strategic partnerships includes £529m in Greater Manchester, £445 million in the North East, £441 million in West Yorkshire, £409 million in the West Midlands and £380 million in the Liverpool City Region. 

London will receive a separate boost through the programme, with the GLA intending to allocate at least £6 billion. Councils are expected to deliver more than half of the homes funded through the programme in the capital. 

Responding to the announcement, Gavin Smart, CIH Chief Executive said: "It's very welcome to see funding from last year's Spending Review now being allocated and getting into the hands of strategic partners across the country, turning the government's long-term commitment into homes that can make a real difference for families. We welcome the strong focus on homes for social rent and the ambition for council housebuilding, and the recognition of the vital role that councils, housing associations and other providers will play in delivering the next generation of genuinely affordable homes. If delivered at pace, this investment has the potential to reduce homelessness, ease pressure on temporary accommodation and help more people access a safe, secure and affordable home."