Details of the main public funding streams for housing regeneration.
The Affordable Homes Programme 2015-18 (AHP) was launched to provide £1.7bn of capital funding to deliver a range of new affordable homes. Allocations of just over £1bn were made to deliver around 58,000 homes, outside of London.
The Mayor’s Housing Covenant 2015-18 (MHC) provides £1.25bn of investment intended to deliver 42,000 affordable homes. Initial allocations were made for £404m to deliver around 18,000 homes.
The Shared Ownership and Affordable Homes Programme 2016-21 (SOAHP) was launched at the Autumn Statement 2015 to provide £4.7bn of capital funding (a mix of new funding and unallocated AHP funding) to deliver 153,000 new affordable homes for shared ownership and rent to buy, and specialist and supported housing. Initial allocations worth £1.3bn were made to deliver over 46,000 affordable homes.
The Homes for Londoners: Affordable Homes Programme 2016-21 (HfL) provides over £3bn of capital funding to build at least 90,000 affordable homes in the capital by 2021. This again is a mix of new funding and unallocated MHC funding. It will be used to provide homes for London Affordable Rent, London Living Rent and London Shared Ownership.
At the Autumn Statement 2016, the Government announced that the unallocated £1.3bn under the SOAHP could be bid for through CME and used to deliver homes for affordable rent, as well as shared ownership and rent to buy. They also committed an additional £1.4bn of capital funding for affordable housing, to be split between the SOAHP and HfL.
The Estate Regeneration Fund provides £140m of recoverable investments aimed at accelerating and improving estate regeneration. This is available for 5 years, from 2016 to 2021.
The Homebuilding Fund provides £3bn of loan finance to cover the development costs of building homes for sale or rent, and the cost of site preparation and infrastructure needed to enable housing development and to prepare land for housing. Interest rates are applied to these loans at commercial rates.