Government Allocates First £10bn from Affordable Homes Programme
The UK government has unveiled its initial funding allocations from the £39bn Social and Affordable Homes Programme, aiming to build over 73,600 homes across England.
Overview of Funding Allocations
On 26 August 2026, the UK government announced the allocation of £9.58 billion from the first wave of funding under the £39bn Social and Affordable Homes Programme (SAHP). This significant investment is aimed at facilitating the construction of over 73,600 new homes across England, with a notable focus on social rent housing.
Strategic Partners and Local Authorities
For the first time, local authorities have been designated as Homes England strategic partners. This status, awarded to 33 strategic partners outside London, marks a significant shift in how councils can engage with housing development. The funding is expected to play a crucial role in enhancing councils' capacity to build, with an additional £46 million allocated over the next three years to support this aim.
Regional Allocations
The funding will be particularly impactful in several key regions:
- Greater Manchester: Approximately £529 million will be allocated for around 4,400 homes.
- West Midlands: An estimated £409 million is set for about 3,200 homes.
- North East England: This region will receive £445 million for around 3,400 homes.
- Other areas benefiting include West Yorkshire, South Yorkshire, and Liverpool.
More than £2 billion of the funding will specifically target mayoral strategic authorities, ensuring that resources are directed where they are most needed.
Social Rent Focus
A significant portion of the new homes—around 60%—is expected to be designated for social rent. This focus aims to address the pressing housing needs in the country, where, as of earlier this month, 177,530 children were reported homeless and living in temporary accommodation. Additionally, there are currently 1.34 million households on social housing waiting lists as of March 2025.
Future Plans
The broader goal of the SAHP is to build 300,000 social and affordable homes over its 10-year lifespan. The Greater London Authority has also previously announced plans to allocate at least £6 billion, which will contribute to the overall funding available for the programme. This comprehensive approach is designed to tackle the longstanding housing crisis and improve living conditions for many in the UK.
The government's commitment to this programme reflects a significant step towards addressing the housing shortage and providing more affordable options for those in need.