Social and affordable housing funding brings certainty but due diligence essential for delivery

Nearly £10 billion of the £39 billion Social and Affordable Homes Programme (SAHP) will be allocated to delivering more than 70,000 social and affordable homes across England over the next 10 years, the government has confirmed⁽¹⁾. 

Funding will go to 33 strategic partners, including councils and housing associations outside London, with further funding to be distributed to mayoral authorities over time. 

Karl Horton, data services director at BCIS, said the funding provides greater certainty for those planning and delivering new homes, while financial due diligence remains essential to understanding the viability of individual projects. 

‘Confirmation of the first major funding allocation under the Social and Affordable Homes Programme is vital. Funding certainty allows councils and registered providers to move forward with greater confidence on sites, procurement and delivery, rather than waiting for direction from central government,’ he said.  

‘But funding alone does not remove the challenges facing delivery. Housebuilding remains expensive, while the new US economic campaign against Iran, including potential sanctions for countries trading with the latter, presents further risks to energy, plant and materials costs. Some commodities also face supply and demand pressures, including the upward pressure that global mining disruption has placed on copper and zinc prices in certain cases.  

‘For those delivering social and affordable housing, early cost planning based on robust, construction-specific data is imperative. It supports informed decision making and effective risk management as cost pressures evolve, while reducing the need for reactive value engineering later in a project.  

‘Cost planning decisions should be grounded in the best available evidence at the time, helping to manage costs effectively and ensure sufficient contingency is built into budgets to accommodate future increases.’   

Around 60% of the 73,600 homes will be delivered as social rent homes. 

The proportion is lower than suggested in previous statements from the Prime Minister about the share of the £39 billion programme that would be directed towards social housing. 

More than £16 billion remains to be allocated outside London, with a further £6 billion to be offered by the Greater London Authority through the programme.  

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^{(1) Ministry of Housing, Communities and Local Government – Historic council housebuilding comeback to help families into secure homes – here}