Mayors Across England Empowered to Lead £39bn Social and Affordable Homes Programme
Mayors across England are set to take a far greater role in shaping the nation’s social and affordable housing future, as the government hands regional leaders new powers over its landmark £39 billion Social and Affordable Homes Programme.
From 2026 to 2036, the decade-long initiative—delivered by Homes England outside the capital and the Greater London Authority within London—will channel billions directly to six mayoral strategic authorities. For the first time, regional mayors will be at the forefront of deciding what types of affordable homes are built, where they are located, and how local needs are prioritised.
Under the new settlement, funding allocations include:
- 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
These areas will now shape their own housebuilding strategies—identifying priority sites, determining the mix of social rent, affordable rent, and shared ownership homes, and steering the number of schemes eligible for grant funding. Providers submitting bids must show clear alignment with local housing priorities, helping drive down council waiting lists and accelerate the delivery of desperately needed homes.
To further remove barriers for councils, the government is introducing a new “portfolio route” through Homes England, enabling local authorities to bid for grant funding earlier in the development process and across multiple sites simultaneously. This change aims to spark larger, more ambitious projects and boost the pipeline of new social housing.
In a major shift, councils will also be permitted—from next year—to combine Right to Buy receipts with grant funding, giving them greater freedom to build at scale. According to the Department for Housing, Communities and Local Government, this reform will empower councils to “go bigger and build more homes than ever before.”
Amy Rees CB, Chief Executive of Homes England, welcomed the move:
“This funding marks a transformative opportunity to deliver thousands of new, affordable homes for communities nationwide. Homes England is committed to ensuring every pound of public investment delivers the right homes in the right places, at pace. We are proud to work hand-in-hand with regional leaders and trusted providers to create a new generation of social and affordable housing.”
Housing Secretary Steve Reed emphasised the urgency of the reforms:
“Families have been trapped in temporary accommodation or stuck on waiting lists for far too long. We are ending that cycle with the biggest boost to social housebuilding in a generation. By empowering mayors and backing councils to build again, we are turning derelict sites into thriving neighbourhoods and restoring hope for thousands of families. Our message is clear: go big, go bold, and go build.”
As part of the government’s wider commitment to regional regeneration, an additional £150 million will be allocated directly to mayoral areas to turn unused brownfield land into more than 4,000 new homes. This builds on the previous £600 million Brownfield Housing Fund, which has already helped unlock construction on 22,000 homes.
