£27Bn Social and Affordable Homes Programme fund opened

Homes England has formally initiated the bidding process for its Social and Affordable Homes Programme 2026-2036 (SAHP), inviting registered providers to seek grant support from a fund of at least £27 billion.

This substantial commitment forms a cornerstone of the government’s broader £39 billion investment aimed at catalysing the most significant expansion in social and affordable housing supply in a generation. The SAHP is explicitly structured to facilitate the accelerated construction of hundreds of thousands of new homes targeted at social rent, affordable rent, and shared ownership, with the overarching objective of addressing acute housing needs while fostering sustainable communities.

According to the Housing and Planning Minister, the new programme represents a critical juncture in the government’s housebuilding strategy, offering both capital and regulatory certainty for registered providers. The government is now encouraging providers to submit robust, ambitious bids that will underpin a decade-long renewal in social and affordable housing delivery. To assist prospective applicants, Homes England has published updated bidding guidance detailing the programme’s requirements, enabling bidders to develop competitive proposals that align with the scheme’s strategic goals.

A defining feature of the new programme is its emphasis on boosting the supply of homes specifically for social rent. The bidding criteria stipulate that a minimum of 60 percent of homes funded under the SAHP must be designated for social rent, reinforcing the government’s prioritisation of the most affordable housing tenures. Additionally, there is a strong policy focus on mixed-tenure developments, alongside stringent expectations for the quality, safety, and sustainability of funded projects. This approach aims not only to increase housing stock but also to enhance the overall standard and long-term viability of new developments.

Registered providers can access the SAHP through two primary routes. The Continuous Market Engagement (CME) mechanism allows partners to collaborate with Homes England throughout the programme’s duration on individual schemes, providing flexibility and greater funding certainty to accommodate local housing needs. The second pathway, the Strategic Partnership Framework, enables long-term funding arrangements for partners capable of delivering housing at significant pace and scale, supporting ambitious delivery aspirations.

For suppliers, subcontractors, and main contractors, the launch of the SAHP marks a significant pipeline of potential business opportunities, both in terms of direct construction contracts and through participation in mixed-tenure and regeneration schemes. The clarity in funding mechanisms and enhanced regulatory guidance signals a favourable environment for market entrants and established sector participants to invest and innovate. Bidders are advised to review the agency’s updated guidance to ensure alignment with local housing objectives and government priorities, thus enhancing their prospects in this competitive programme.