The Social and Affordable Homes Programme

As part of its June 2025 Spending Review, the government announced £39bn in funding for the next Affordable Homes Programme which will be titled the Social and Affordable Homes Programme (SAHP). This funding will be spread across ten years.

Spending will reach £4bn per year in 2029-30 and will then rise in line with inflation.

Homes England and the Greater London Authority (GLA) have since launched the prospectuses for the programme. 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).

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

Bids will open in February, and Homes England will release bidding guidance in advance. We will keep members updated as this develops. 

If you have any questions about the SAHP, please get in touch.