Important Facts of the News
- Mayors outside London to guide £7 billion indicative spending under the £39 billion Social and Affordable Homes Programme.
- Programme aims to deliver around 300,000 affordable homes across England from 2026 to 2036.
- At least 60 percent of the new homes will be for Social Rent, equal to about 180,000 properties.
- Six mayoral regions set for funding: Greater Manchester £1.8 billion, West Midlands £1.7 billion, North East £1.1 billion, West Yorkshire £1 billion, Liverpool City Region £700 million, South Yorkshire £700 million.
- £150 million allocated to convert brownfield land into over 4,000 homes.
- 29 councils received £5.5 million to unlock up to 7,000 council homes.
- New flexibility from 2026 to 27 allows councils to combine Right to Buy receipts with grant funding.
- £950 million Local Authority Housing Fund to boost temporary accommodation capacity.
- Programme supports the plan to build 1.5 million homes during the current Parliament.
- Bidding for funding to open in February 2026.
Mayors to Shape Affordable Housing Priorities
Regional Mayors across England, excluding London, will have stronger decision making powers over how affordable housing money is used in their areas. This change forms part of a long term plan to speed up the development of social and affordable homes for families who cannot buy or rent privately.
Through the record £39 billion Social and Affordable Homes Programme, £7 billion of indicative spending has been set aside for six mayoral regions. This is the first time such responsibility has been handed to regional leaders, allowing them to set priorities for the types of housing, locations for development and the number of bids they expect to support.
Councils to Build More Social Housing
The programme is designed to reduce the high number of households waiting for social housing and families living in temporary accommodation. To support this, councils will receive funding to draw up plans that can unlock new council homes at a scale not seen in years.
Additional support for councils includes a new route to bid into the programme and a change from 2026 to 27 allowing councils to combine Right to Buy receipts with grant funding. This will help councils bring forward larger and more ambitious housing projects.
Support for Local Authorities and Providers
Homes England will work with Mayors to ensure that providers show clear alignment to local housing needs when bidding for grants. Homes England is committed to ensuring funding is used efficiently to deliver the right homes in the right locations.
The £950 million Local Authority Housing Fund, the largest round to date, aims to improve the stock of temporary accommodation and cut reliance on costly bed and breakfast stays for homeless families.
Investment in Brownfield Development
To increase housing supply and revive neglected land, £150 million is being allocated to help Mayors transform brownfield sites into more than 4,000 homes. This investment is expected to open up unused plots, create new jobs and support local families.
The new investment builds on the earlier £600 million Brownfield Housing Fund which has already supported 22,000 housing starts.
Programme Delivery and Next Steps
The Social and Affordable Homes Programme will run from 2026 to 2036. Delivery partner prospectuses are being published to guide housing providers on accessing funding and meeting requirements.
Bidding guidance will be issued by Homes England and the Greater London Authority before the application window opens in February 2026. The government aims for the programme to support a decade of renewal for social and affordable housing and contribute to the overall goal of 1.5 million new homes this Parliament.