Affordable Homes Funding Boost Announced for Councils

New funding packages have been announced by Homes England – designed to help councils strengthen their housebuilding plans and unlock more affordable homes – through the Social and Affordable Homes Programme (SAHP).

More councils will be able to bring forward ambitious affordable housing plans thanks to a £21.8 million boost to the Council Housebuilding Support Fund (CHSF).

Available until March 2029, the revenue funding will help local authorities build the skills, capacity and partnerships needed to develop strong bids for the Social and Affordable Homes Programme (SAHP).

Housing Secretary Angela Rayner said: “Councils will be at the heart of the biggest housebuilding revival in decades, but we know many lack the capacity and expertise to turn plans into reality. This funding will help councils build the skills, capacity and partnerships needed to make the most of our historic £39 billion investment.  By putting councils back in the driving seat, we’re helping more families find a safe, secure place they can call home.”

Councils can now apply for funding to support:

• Knowledge and skills development
• Housing pipeline development
• Pre-development and enabling activities
• Partnership working
• Additional staffing capacity.

By supporting work at an early stage, the fund will help councils unlock more housing opportunities, maximise social rent delivery and respond to local housing needs.

Affordable Housing

Shahi Islam, the Director of Affordable Housing at Homes England, said: “The Council Housebuilding Support Fund is a strong example of how Homes England is enabling locally led housing delivery and helping councils unlock more affordable homes for their communities.

“We will continue to lead engagement with councils, manage the application process and make investment recommendations to the Ministry of Housing, Communities and Local Government (MHCLG), helping local authorities turn housing ambitions into deliverable projects funded by SAHP.”

The additional investment forms part of the government’s wider £46 million Capacity to Build support package announced in August 2026 and builds on the success of the fund’s first round in 2025. Capacity to Build also includes activity from the Local Government Association via Council Housebuilding Support Services that provides free upfront assessment and tailored support to Councils and Pathways into Planning that aims to bring 150 new graduate planners into the sector between 2026 to 2029.

CHSF will provide revenue funding to help around 75 councils to submit capital bids to SAHP. Councils also have access to capital funding via Right to Buy receipts, Housing Revenue Accounts and borrowing via the Public Works Loan Board at a discounted rate.