Councils to be named as Homes England strategic partners for first time
The government has today (Tuesday) revealed allocations for the first wave of funding from its £39bn Social and Affordable Homes Programme (SAHP).
The first tranche of funding is worth £9.6bn and will go to 33 organisations in parts of England outside London, to help build than 73,600 homes, of which 60% are expected to be social rent.
In a Stock Exchange update, Vistry, which is due to announce the results of a strategic review next month, said it had been handed £350m under the programme, adding that it will be used to build 3,000 affordable homes.
Others on the list (see below), which features housing associations, councils and other providers, include Hyde Housing Association and Newcastle city council.
Local authorities have been eligible to become strategic partners since 2021 but this will be the first time they have been awarded the status.
As in previous iterations of the programme, funding outside of London will be delivered through Homes England, although areas with mayoral strategic authorities have been given a greater input and the government said more funding would go directly to these bodies as the 10-year programme develops.
More than £2bn of the first wave of funding will be spent in such areas.
“Families can’t be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live,” said housing secretary Angela Rayner.
| Organisation (ranked by planned delivery numbers) | Homes | Grant* |
|---|---|---|
| Orbit Group Limited | 3,335 | £350.0m |
| Together Housing Association Limited | 3,200 | £326.6m |
| Vistry Homes Limited | 3,028 | £350.0m |
| Onward Homes Limited | 3,000 | £345.1m |
| Clarion Housing Association Limited | 2,977 | £350.0m |
| Torus62 Limited | 2,865 | £349.9m |
| Platform Housing Group Limited | 2,800 | £350.0m |
| Sage Homes RP Limited | 2,772 | £350.0m |
| Thirteen Housing Group Limited | 2,750 | £349.2m |
| Bromford Flagship Livewest Limited | 2,629 | £350.0m |
| Great Places Housing Association | 2,600 | £320.6m |
| Places For People Group Limited | 2,595 | £350.0m |
| Karbon Homes Limited | 2,533 | £350.0m |
| Amplius Living | 2,500 | £320.5m |
| Metropolitan Housing Trust Limited | 2,500 | £299.8m |
| EMH Housing and Regeneration Limited | 2,495 | £314.5m |
| Vivid Housing Limited | 2,482 | £349.9m |
| Stonewater Limited | 2,348 | £350.0m |
| Hyde Housing Association Limited | 2,250 | £349.9m |
| Vico Homes Limited | 2,200 | £250.0m |
| Yorkshire Housing Limited | 2,010 | £230.0m |
| Sanctuary Housing Association | 2,000 | £350.0m |
| Jigsaw Homes North | 1,990 | £249.5m |
| Abri Group Limited | 1,967 | £350.0m |
| Midland Heart Limited | 1,820 | £225.1m |
| Magna Housing Limited | 1,500 | £250.0m |
| Park Properties HA Ltd | 1,500 | £148.9m |
| Plymouth Community Homes Limited | 1,500 | £250.0m |
| Accent Housing Limited | 1,340 | £172.4m |
| Aster Communities | 1,320 | £240.0m |
| Eastleigh Borough Council | 1,042 | £154.4m |
| Newcastle City Council | 966 | £141.4m |
| Cambridge City Council | 803 | £96.4m |
“That’s prime minister and I are doing everything we can to get councils building once again – it’s fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home.”
The government also announced it would be giving councils further assistance to build by giving them full use of Right to Buy receipts, valued at £1.61bn last year, and by investing £46m over the next three years to strengthen councils’ building capacity.
Allocations for Established Mayoral Strategic Authorities outside of London
- Greater Manchester: £529m estimated spend to support c. 4,400 homes
- West Midlands: £409m estimated spend to support c. 3,200 homes
- North East: £445m estimated spend to support c. 3,400 homes
- West Yorkshire: £441m estimated spend to support c. 4,000 homes
- Liverpool City Region: £380m estimated spend to support c. 3,100 homes
- South Yorkshire: £249m estimated spend to support c. 2,200 homes
The government also revealed that the Greater London Authority intends to offer allocations of at least £6bn, with City Hall to be in touch with its own bidders in the coming weeks.
This is more than half the £11.7bn that Sadiq Khan, or his successor, have to spend over the 10-year lifetime of the programme. By contrast, Homes England has allocated a little over a third of its own pot in this first wave of funding.
According to the government, councils are expected to deliver more than half of the homes funded in the capital.
Sector responds to SAHP allocations
Kate Henderson, chief executive, National Housing Federation
“It is hugely welcome to see this much-anticipated funding confirmed, something we have been calling for to kickstart construction on tens of thousands of desperately needed new social homes.
“This is a major vote of confidence in not-for-profit housing associations and in the vital and distinct role they play in this country, as organisations that work for the long-term benefit of their communities.
“Housing associations have risen to the challenge of delivering the governments ambitions. Working in partnership with government, councils and mayors, they have used the support and certainty provided by government to rebuild their development capacity, invest in skills, and be the strong and reliable partners needed to build a new generation of social and affordable homes, alongside increasing investment in their existing homes. This is no better demonstrated than in the scale and ambition of the bids submitted to this Social and Affordable Homes Programme.
“We will continue work with national and local government to maximise housing associations’ potential to deliver new social rented homes during this parliament and over the next decade, meeting the housing needs of local people in every part of the country.”
Gavin Smart, chief executive at the Chartered Institute of Housing
“It’s very welcome to see funding from last year’s Spending Review now being allocated and getting into the hands of Strategic Partners across the country, turning the government’s long-term commitment into homes that can make a real difference for families.
“We welcome the strong focus on homes for social rent and the ambition for council housebuilding, and the recognition of the vital role that councils, housing associations and other providers will play in delivering the next generation of genuinely affordable homes. If delivered at pace, this investment has the potential to reduce homelessness, ease pressure on temporary accommodation and help more people access a safe, secure and affordable home.”
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