Homes England is inviting partners to submit proposals for affordable housing grants to support the near-term delivery of affordable housing under the 2021 to 2026 Affordable Homes Programme.
Homes England has said that the invitation is in response to market sentiment which has indicated that there is an increased number of investment opportunities at present that can result in near-term delivery of additional affordable housing supply.
It is expecting to allocate an unquantified proportion of the existing 2021-2026 Affordable Homes Programme budget to projects that will begin by March 2025 and be completed by March 2026, with proposals required to deliver at least 500 affordable homes.
The programme supports the capital costs of developing affordable housing
Terms will be secured through the existing contractual framework in place for current grant recipients and a CME contract for new entrants.
CME allows providers to apply for funding for individual schemes, while strategic partnerships enable housing providers to access grants for a longer-term development programme.
The Affordable Homes Programme provides grant funding to support the capital costs of developing affordable housing for rent or sale.
Home England has said that it is committed to working closely with a diverse range of partners, both existing and those it hasn’t previously worked with to maximise the impact of its funding.
In return, it expects partners to share the ambitions set out in Homes England’s strategic plan to create a more resilient and diverse housing market.
This means partners will also be expected to focus on promoting significant use of MMC, high-quality sustainable design and working closely with local small to medium-sized enterprise housebuilders.
Funding is needed to ensure the UK meets its current housing demand
The UK Government has committed £11.4 billion in funding over the 2021-2026 Affordable Homes Programme, which will be split between England (£7.4 billion) and London (£4 billion).
September 2021 saw Homes England commit almost £5.2 billion in affordable housing grants to 31 strategic partnerships with 35 organisations under the programme.
The 2021-2026 Affordable Homes Programme was expected to support the delivery of up to 180,000 new homes with completions continuing up to 2028.
Government funding like this will be crucial in meeting the UK’s current housing demand and amplifying the delivery of the affordable housing that communities desperately need.