Social and Affordable Homes Programme

Matthew Pennycook Excerpts

Tuesday 11th November 2025 Written Statements

[The Minister for Housing and Planning (Matthew Pennycook)]

At the spending review in June, the Government announced £39 billion for a new social and affordable homes programme over 10 years from 2026-27 to 2035-36. The SAHP will give registered providers of social housing—both private registered providers and councils—a decade of certainty over the capital funding they will have available to build new, more ambitious housing development projects. It is integral to delivering the Government’s commitment to the biggest increase in social and affordable house building in a generation.

Today I am updating the House on the launch of the full details of the programme as part of the five-step plan we set out on 2 July to kick-start a decade of social and affordable housing renewal.

The core strategic objective of the new programme is to maximise supply—particularly of social rent homes. At least 60% of homes delivered through the SAHP will be for social rent. This reflects the priority this Government accord to social rented housing as the mark of a country that takes seriously its duty to house those for whom the market cannot cater; a platform for families to live, grow, and to build a better life; and as a public good that benefits the nation as a whole. Our ambition is to deliver around 300,000 affordable homes over the programme’s lifetime, with around 180,000 for social rent.

The Ministry of Housing, Communities and Local Government policy statement on the social and affordable homes programme 2026-36 sets out the programme’s national architecture, which together with delivery partner prospectuses, details how RPs can access funding, the expectations placed on them, and the flexibilities built into the programme to support an ambitious and diverse pipeline of new affordable homes.

Oversight of programme delivery will remain with Homes England and—within London—the Greater London Authority. Up to 30% of the funding over the programme—up to £11.7 billion over 10 years—will be delivered by the GLA in London, with at least 70% available for the rest of England via Homes England.

As per the commitments we set out in the English devolution White Paper, we have worked closely with established mayoral strategic authorities to ensure they set the strategic direction of the programme in their areas. The priorities that each EMSA has identified to guide bids in their areas have been published as part of the Homes England prospectus, and RPs will be expected to demonstrate how they have incorporated these, including tenure preferences and priority sites, into their bids in EMSA areas. To support effective planning, we have also delivered on our commitment to set out up-front indicative spend per EMSA. These figures are intended to guide bids, but they are not a ringfence or a floor.

To increase the diversity of social and affordable housing supply, we have ensured that the programme has the necessary grant rate flexibility to support homes that require greater up-front investment, including council, supported, community-led and rural housing. As part of our commitment to reinvigorating council house building, we have also confirmed the following additional measures designed to support delivery of the SAHP by councils:

Establishing a new continuous market engagement “portfolio” route to assist councils to bid for grant at an earlier stage in the pre-development process and across several sites at once, thereby lowering pre-development risk and encouraging larger, more ambitious development pipelines.

Enabling councils to combine right-to-buy receipts with SAHP funding. No limit will be placed on the level of right-to-buy receipts that can be used and the option to mix receipts with grant will increase the viability of councils’ bids.

Awarding £5.5 million in grant funding to 29 councils through the inaugural round of our £5.5 million council house building support fund, to increase the speed and scale of bids into the SAHP to deliver new council homes.

We will also shortly be contacting councils to inform them of their initial offer under the fourth round of the local authority housing fund and provide guidance on how councils might apply for funding. The LAHF will enable councils to grow their stock of good-quality temporary accommodation, reducing the reliance on expensive and unsuitable nightly paid or B&B accommodation. The fund will also provide homes for some families arriving through the Afghan resettlement programme. In addition to relieving short-term housing pressures, the fund will provide councils with a long-term asset to the benefit of local communities and residents.

The SAHP will also make targeted improvements for those in shared ownership. We know that many shared owners have faced challenges they could not have foreseen, such as high and rising service charges. In the new programme, we will expect RPs to improve the experience for customers, including through giving greater consideration to long-term customer affordability, increasing transparency and fairness on costs, and giving customers the ability to opt out of fees for services that are optional.

Alongside the SAHP, we will also make available £2.5 billion of low interest loans to support the delivery of new social and affordable housing. The loans will be awarded through a bidding process that is closely aligned with the SAHP, and the loans will be administered by the national housing bank and by the GLA in London. The process will be open to private registered providers and will test the additionality that they can achieve with loans. A substantial allocation of the loans will be targeted at London in the light of the acute challenges facing private registered providers in the capital.

In the coming months, we will provide RPs with the remaining information they need to finalise their business and future supply plans—including how we will implement rent convergence at autumn Budget; and our response to recent consultations on a modernised decent homes standard and minimum energy-efficiency standards.

The launch of the full details of the SAHP represents a significant milestone. With the parameters for delivery now clear, we are calling on all RPs to start preparing large and ambitious proposals ready for when bidding opens in February 2026 and to then refine these in collaboration with Homes England and the GLA as the bidding window for strategic partnerships closes in April 2026.

Alongside bids to the SAHP, we are also calling on all RPs to support the effective delivery of section 106 homes. Section 106 agreements are, and will remain, an essential mechanism for delivering social and affordable housing, and it is essential that all parts of the system work in partnership to ensure it is operating as required.

I commend to the House the MHCLG policy statement, individual scheme prospectuses, and the revisions made to Homes England’s capital funding. Following bids, we will set targets for delivery under each partner to make sure delivery remains aligned with local housing needs and the programme’s national ambition.

[HCWS1027]