Historic council housebuilding comeback to help families into secure homes

• Families stuck without a secure home to benefit from the first wave of funding from the government's £39bn Social and Affordable Homes Programme 

• Councils backed to build more homes as ministers drive the biggest council housebuilding revival in decades  

• More decisions over housing investment to move closer to local communities  

Families trapped in temporary accommodation or stuck on housing waiting lists will be helped into safe, secure homes as the government kickstarts its record £39bn Social and Affordable Homes Programme. 

Today (25 August) the Prime Minister and Secretary of State, Angela Rayner, are announcing nearly £10 billion of allocations to build thousands more quality council, social and affordable homes. 

The first wave of funding announced today will support the delivery of more than 70,000 homes across England. It will go to 33 Strategic Partners councils, housing associations and other providers that have secured long-term funding certainty to deliver homes at scale. Today's announcement also marks a major step in the ambition to getting councils building at scale again. 
 

Alongside housing associations, councils will be awarded Strategic Partner status with Homes England, helping put them firmly back at the heart of housebuilding. Around 60% of homes delivered through these partnerships are expected to be for Social Rent, the most affordable form of rented housing, helping more families access a secure home. 

With almost 180,000 children growing up without a permanent home, the government is putting councils at the heart of housebuilding. 

Prime Minister Andy Burnham said: 

"No child should be raised in a hostel room and no family should wait ten years for a front door of their own. I have said from my first day in this job that everything starts with a good home.

Nearly £10 billion will go to councils and housing associations to build genuinely affordable homes, most of them for social rent, in the places where families are waiting longest.

Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again."

Secretary of State Angela Rayner said: 

"Families can't be left raising children without a place to call home, and none of us should spend years waiting for somewhere safe and affordable to live. 

"I know how importantfixing this is because I've been there. A safe and secure home was the foundation for a better life - I couldn't have got to where I have today without it. 

That's why the Prime Minister and I are doing everything we can to get councils building once again it's fundamental to turning the housing crisis around, helping families out of temporary accommodation and into a secure home. 

Over £2 billion of today's funding is expected to be spent in Mayoral areas outside of London. As part of the government's wider devolution agenda, Established Mayoral Strategic Authorities are setting the strategic direction for the programme in their areas, helping ensure investment reflects local priorities.  

Over time, more funding is expected to flow directly to mayoral authorities as the programme develops, building on the Government's commitment to move power and decision-making out of Whitehall. 

Today's allocation is only the first stage of the ten-year programme. More than £16 billion remains to be allocated outside London and in allocating this funding, we intend to prioritise Social Rent homes and council housebuilding, helping deliver the largest expansion of council housing in decades. 

Amy Rees, Chief Executive Officer at Homes England said: 

"Today's announcement marks an important step in delivering the government's £39 billion Social and Affordable Homes Programme. Through these strategic partnerships and continuous market engagement, alongside Homes England's wider investment including through the National Housing Bank, we can help unlock thousands of much-needed homes across England. By working with councils, mayors, housing associations and local partners, we can support the return of council housebuilding at scale, increase the supply of social rent homes and create thriving places that people are proud to call home." 

Today's package goes further by helping councils access more of the funding available to the programme and make full use of Right to Buy receipts with £1.61 billion raised from sales alone in the last financial year and other available funding streams.  

To support this ambition, the government is investing a further £46 million over the next three years to strengthen councils' skills, expertise and capacity to bring forward ambitious housebuilding plans. 

Londonwill receivea major boost for housebuilding, reflecting the acute need for affordable housing in the capital. 

The Greater London Authority intends to offer at least £6 billion through the programme, with councils expected to deliver more than half of the homes funded in London. The capital is already demonstrating what can be achieved when local leaders have greater control over housing investment and delivery.

The Mayor of London, Sadiq Khan, said:

Tackling the housing crisis is one of my top priorities and I'm doing everything I can to deliver more affordable homes that Londoners desperately need. We've built record numbers of council homes in London, but the number of families and children without a permanent home stuck on housing waiting lists is still unacceptable. I want to work with this new Government to deliver a step change in how many council homes we can deliver across the capital. 

Thousands of Londoners will benefit from this new wave of new social and affordable homes, which will help people out of temporary accommodation and provide good, affordable homes to live in for the long-term, as we build a fairer, better London for everyone. 

Housing associations and other providers will continue to play a vital role in delivering the social and affordable homes the country needs.  

Alongside councils, they will be central to delivering the Government's ambition to increase housebuilding and expand access to genuinely affordable homes. 

Kate Henderson, Chief Executive of the National Housing Federation, said: 

It is hugely welcome to see this much-anticipated funding confirmed, something we have been calling for to kickstart construction on tens of thousands of desperately needed new social homes. 
 
This is a major vote of confidence in not-for-profit housing associations and in the vital and distinct role they play in this country, as organisations that work for the long-term benefit of their communities. 
 
Housing associations have risen to the challenge o delivering the governments ambitions. Working in partnership with government, councils and mayors, they have used the support and certainty provided by government to rebuild their development capacity, invest in skills, and be the strong and reliable partners needed to build a new generation of social and affordable homes, alongside increasing investment in their existing homes. This is no better demonstrated than in the scale and ambition of the bids submitted to this Social and Affordable Homes Programme. 

We will continue work with national and local government to maximise housing associations' potential to deliver new social rented homes during this parliament and over the next decade, meeting the housing needs of local people in every part of the country. 

The package builds on the government's commitment to deliver 1.5 million homes this Parliament, including the biggest boost to council, social and affordable housing in a generation. 

Gavin Smart, Chief Executive at the Chartered Institute of Housing, said:

"It's very welcome to see funding from last year's Spending Review now being allocated and getting into the hands of Strategic Partners across the country, turning the government's long-term commitment into homes that can make a real difference for families. We welcome the strong focus on homes for social rent and the ambition for council housebuilding, and the recognition of the vital role that councils, housing associations and other providers will play in delivering the next generation of genuinely affordable homes. If delivered at pace, this investment has the potential to reduce homelessness, ease pressure on temporary accommodation and help more people access a safe, secure and affordable home."

Notes to editors: 

• The Social and Affordable Homes Programme (SAHP) is a £39 billion investment programme over ten years. The programme has a target for at least 60% of homes delivered through it to be for Social Rent.

• £9.58 billion is beingallocatedto 33 Strategic Partners outside of London, including housing associations and other providers, to support the delivery of 73,600 new social and affordable homes across England over the next ten years.Nearly two-thirdsof homes delivered through these partnerships are expected to be for Social Rent.This is the first major wave of funding allocations under the programme. Further funding will be allocated over the lifetime of the programme. 

• Outside London, the Social and Affordable Homes Programme is administered by Homes England. 

• Section 106 (S106) agreements are, and will remain, an essential mechanism for delivering social and affordable housing in addition to grant-funded delivery, through the Social and Affordable Homes Programme 

• In 2025/26, councils received £1.61 billion in Right to Buy sales, all of which can now be retained and reinvested in new social and affordable homes. 

• The £46mCapacity to Build' funding forms a package of support to strengthen councils' skills, capacity and capability to deliverand acquirenew council homes.Building on the success of2025-26, the £46m willfund the continuation of: 

o The Council Housebuilding Support Funddelivered with HomesEngland,providing revenue fundingfor early-stagedevelopmentactivity tohelp councilsbring forwardambitiousbids to theSAHP; 

o The Council Housebuilding Support Service delivered by theLocal GovernmentAssociation, providingbespoke no-costsupport,advice andexpertisetohelpcouncilsdeliver more homes; 

• An expansionto the Pathways to Planning graduate scheme delivered by the Local Government Association,helping councilsrecruit andretaingraduates in specialist housebuilding roles, including surveying and construction project management. 

• The Government has set out its long-term direction for the Social and Affordable Homes Programme, with more funding expected to flow directly to Established Mayoral Strategic Authorities (EMSAs) outside London as the programme progresses.  

• In allocating remaining funding, the government intends to prioritise Social Rent and council homes, alongside a continued focus on local decision-making and delivery.  

• Social Rent is the most affordable form of social housing. It is usually provided by councils or housing associations, with rents typically set well below private market rents. This makes it one of the most affordable housing options for people on low incomes. 

Regional funding breakdown 

• For the following Established Mayoral Strategic Authorities outside of London, the estimated Strategic Partnership spend in each area is as follows: 

o Greater Manchester: £529m estimated spend to support c. 4,400 homes 

o West Midlands: £409m estimated spend to support c. 3,200 homes 

o North East: £445m estimated spend to support c. 3,400 homes 

o West Yorkshire: £441m estimated spend to support c. 4,000 homes 

o Liverpool City Region: £380m estimated spend to support c. 3,100 homes 

o South Yorkshire: £249m estimated spend to support c. 2,200 homes 

• Following the designation of four new Established Mayoral Strategic Authorities (EMSAs), they will now also be able to set the strategic direction of the Programme in their areas. Those EMSAs are: Cambridgeshire and Peterborough; East Midlands; West of England; York and North Yorkshire 
• Today's announcement comes as the final National Planning Policy Framework is publishedlastweekthat encourages a more diverse mix of housing, including more affordable homes for rural communities, and stricter rules to maximise social and affordable housing delivery on low-quality grey belt land.