Government launches Social and Affordable Homes Programme prospectuses

On 7 November, Homes England and the Greater London Authority (GLA) launched the prospectuses for the new Social and Affordable Homes Programme (SAHP). This launch also included:

• A supporting policy statement from the Ministry of Housing, Communities and Local Government (MHCLG).
• A letter from the Housing Minister, Matthew Pennycook MP to the sector.
• Guidance detailing the strategic priorities of Established Mayoral Strategic Authorities (EMSAs).

Across these documents, the government encourages strong, ambitious bids and highlights the importance of supported, rural and community-led housing, which are part of the national strategic priorities set out in the prospectuses. Although there are no specific targets around these tenure types, they are priorities for the programme and will form part of the bid assessment process. Homes England also recognises that these types of homes can cost more to deliver, and that will be taken into account in the grant rate assessment.

We have summarised the key details from these documents below. Please get in touch if you have any questions.

The role of Established Mayoral Strategic Authorities

The guidance released today details the local priorities that Established Mayoral Strategic Authorities (EMSAs) have set in their areas. Bids will need to align with their local priorities where there are plans to build within those areas, but there is no expectation that the SAHP will be able to support the delivery of all the EMSA’s ambitions.

Homes England will remain the final decision maker and single window for all applications and funding. The only exception to this is the Greater London Authority (GLA), which will be responsible for allocating up to 30% of the SAHP funding.

Delivery targets and tenure types

The government aims to deliver 300,000 homes over the programme, with at least 60% or 180,000 of the homes for social rent. The remainder of the SAHP will be for other tenures including shared ownership, affordable housing as well as intermediate rent in London and London Living Rent.
Homes England is committed to ensuring shared ownership schemes are viable and provide a good experience for customers.

Regeneration

Although the SAHP focuses on new supply, there is some support for regeneration schemes. The portfolio approach to Continuous Market Engagement (CME) which is detailed below means that if a portfolio or Strategic Partnership provides a net increase in affordable homes, not every individual part of it needs to. This and the longer, 10-year timeframe should provide greater support to regeneration projects.

Continuous Market Engagement (CME)

The SAHP will allow bids for individual projects on an ongoing basis. In addition to the scheme-by-scheme funding, Homes England launched a new portfolio approach that allows for bids across several sites at once. This is to encourage more ambitious projects and to provide more flexibility as schemes change and costs evolve over time.

Strategic partnerships

The SAHP will continue to allow for Strategic Partnerships. Homes completing after 2036 will also be eligible. To expand the delivery of diverse schemes, Homes England has launched a new route for Registered Providers that deliver the majority of their homes via specialist and supported housing, with a lower minimum number of homes that are required to be delivered.

Low interest loans and the National Housing Bank

MHCLG has reiterated its commitment to providing £2.5bn in low-interest loans for new social and affordable housing. These loans will be available from 2026-2030 and administered by the National Housing Bank and the GLA. The bidding process will closely align with the SAHP, and more detail is expected on this before the end of the year.

Next steps

Homes England have been in touch to organise engagement opportunities around the SAHP at upcoming member networks. We are confirming the details of these and will be in touch with more information soon. Bids will open in February and Homes England will release bidding guidance in advance. In the meantime, if you have any questions about the SAHP or our wider work on supply, please get in touch.